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On Monday, Cantor Fitzgerald reiterated its Overweight rating on ORIC Pharmaceuticals (NASDAQ:ORIC), currently trading at $13.39, after an incident involving a potential news leak. According to InvestingPro data, the company has shown remarkable momentum with a 20.69% return in the past week alone, reflecting strong market interest in this $918 million market cap biotech firm. According to the firm, a snippet was found on the ASCO-GU daily news website this morning, which seemed to be an accidental release. The snippet was related to mevrometostat, an oral EZH2 inhibitor developed by Pfizer (NYSE:PFE) for the treatment of prostate cancer.
The information was expected to be officially published on February 13, coinciding with the day set for the release and oral presentation of the mevrometostat late breaker abstract. The analyst from Cantor Fitzgerald noted that although there was no progression-free survival (PFS) data visible in the leaked image, the commentary accompanying the snippet was highly positive regarding the potential impact of mevrometostat, and by extension, ORIC Pharmaceuticals.
The leak presents a glimpse into what could be significant news for ORIC, whose partnership with Pfizer on the development of mevrometostat could be a key driver for the company’s future growth. While the company maintains a strong financial position with a current ratio of 13.15, InvestingPro subscribers can access 8 additional key financial insights to better evaluate the company’s potential. The accidental release suggests that there might be positive developments regarding the drug’s efficacy in treating prostate cancer, although specific data points like PFS were not disclosed in the leaked snippet.
Investors and industry watchers are now likely to anticipate the official release of the full abstract and presentation on February 13, which will provide more comprehensive details about mevrometostat’s clinical performance and its potential benefits for patients with prostate cancer.
The Overweight rating by Cantor Fitzgerald indicates the firm’s positive outlook on ORIC Pharmaceuticals’ stock, suggesting that the analysts believe the stock could outperform the average total return of the stocks in the analyst’s industry coverage universe over the next 12 to 18 months. This aligns with the broader analyst consensus, as tracked by InvestingPro, with price targets ranging from $13 to $25 per share. This rating remains unchanged following the leak, and the forthcoming official news could further influence the company’s stock performance.
In other recent news, ORIC Pharmaceuticals has been the focus of attention due to a potential leak of promising clinical trial data. Analyst Prakhar Agrawal from Cantor Fitzgerald maintained an Overweight rating on the company, following the leak which suggested the company’s drug candidate mevrometostat may provide a survival benefit to patients with metastatic castration-resistant prostate cancer. The same analyst believes that the data for mevrometostat are very positive and exceed investor expectations.
Simultaneously, Cantor Fitzgerald reiterated its confidence in ORIC, emphasizing the potential of mevrometostat in upcoming clinical trials. The firm projected that a relative Progression-Free Survival Hazard Ratio below 0.7 would be meaningful and could boost confidence in the treatment’s effectiveness. The firm also suggested that ORIC’s lung cancer asset justifies a valuation of approximately $10 per share.
Citi also reaffirmed its Buy rating for ORIC, anticipating a significant increase in ORIC’s stock value in conjunction with the expected publication of Pfizer’s ASCO GU late breaker abstract. This abstract is set to reveal pivotal randomized Progression-Free Survival data that compares the combination of mevrometostat and XTANDI to XTANDI alone in the treatment of metastatic castration-resistant prostate cancer.
Lastly, ORIC Pharmaceuticals announced updates on its ongoing clinical trials, including early safety and efficacy data for its drug candidate ORIC-944. The company also announced a new collaboration with Johnson & Johnson to evaluate another drug candidate, ORIC-114, in first-line treatment of non-small cell lung cancer patients with specific mutations. These are recent developments in the ongoing journey of ORIC Pharmaceuticals.
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