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Investing.com - Leerink Partners raised its price target on Cogent (NASDAQ:COGT) to $18.00 from $16.00 while maintaining an Outperform rating following positive topline results from the SUMMIT Part 2 trial. The stock, currently trading at $9.83, has surged over 30% from its previous close of $7.41. According to InvestingPro data, analyst targets for COGT range from $7 to $25, with a consensus recommendation leaning strongly toward Buy.
The pivotal trial evaluated bezuclastinib (bezu) in indolent systemic mastocytosis (ISM), showing an 8.91-point placebo-adjusted benefit on the primary endpoint of mean change in total symptom score from baseline to Week 24. This result exceeded what management had previously described as a "home run" scenario at a recent industry conference. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 5.13, though it’s currently not profitable.
The efficacy demonstrated by bezu was approximately 57% better than competitor Blueprint Medicines (NASDAQ:BPMC)’ Ayvakit, which showed a 5.7-point placebo-adjusted improvement at the 25mg dose, despite Cogent enrolling a more severe patient population in its SUMMIT trial.
Safety data was better than anticipated, with lower rates of Grade 3 AST/ALT elevations compared to SUMMIT Part 1, and no instances of Hy’s law or drug-induced liver injury. This safety profile removes a key concern for investors ahead of upcoming APEX and PEAK trial readouts expected in the second half of 2025.
Leerink increased its probability of success for bezu in ISM to 75% from 50% and projects peak revenues of approximately $2.5 billion across multiple indications, with ISM comprising about $800 million of that total. With a market capitalization of $1.12 billion and a Financial Health Score rated as ’FAIR’ by InvestingPro, the company holds more cash than debt on its balance sheet. Subscribers can access 6 additional ProTips and comprehensive financial metrics to better evaluate COGT’s investment potential.
In other recent news, Cogent Biosciences announced positive top-line results from its SUMMIT trial of bezuclastinib for non-advanced systemic mastocytosis. The trial achieved statistical significance across all primary and key secondary endpoints, with 87.4% of patients showing a significant reduction in serum tryptase levels. Cogent plans to submit a New Drug Application to the FDA by the end of 2025 and is preparing for additional trial results in other indications. The company reported a strong financial position with a cash balance of $237 million and access to an additional $350 million through a debt facility. Analysts have weighed in on these developments, with Citi maintaining a buy rating and a price target of $15, citing a positive risk/reward setup. Piper Sandler also reiterated an Overweight rating with a $24 price target, highlighting the drug’s differentiated profile. Meanwhile, H.C. Wainwright adjusted its price target to $12 from $14, maintaining a Buy rating despite a narrower-than-expected net loss for the first quarter of 2025. The firm noted that Cogent’s financial resources should support operations into late 2026, covering expected clinical readouts.
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