Guggenheim initiates Janux Therapeutics stock with Buy rating on PSMA therapy

Published 04/09/2025, 11:32
Guggenheim initiates Janux Therapeutics stock with Buy rating on PSMA therapy

Investing.com - Guggenheim initiated coverage on Janux Therapeutics (NASDAQ:JANX) with a Buy rating and a $72.00 price target on Thursday. The stock, currently trading at $23.04, has shown significant volatility with a beta of 2.85, according to InvestingPro data.

The research firm cited the company’s JANX007, a PSMA T cell engager (TCE) immunotherapy for metastatic castration-resistant prostate cancer (mCRPC), as a key factor in its positive outlook. Guggenheim believes the therapy could "create significant shareholder value" due to its promising PSA responses in early activity studies. InvestingPro analysis shows the company maintains a strong financial foundation, with cash reserves exceeding debt obligations.

While acknowledging that the phase 1 progression-free survival (PFS) results in late-line mCRPC patients are comparable to competitors at 7-8 months, Guggenheim emphasized that JANX007’s PSA results demonstrate successful activation of an immunotherapy mechanism in what has historically been considered a "cold tumor."

The firm drew parallels to Amgen’s Imdelltra for small cell lung cancer, which showed superior overall survival results than its progression-free survival data would predict. This suggests TCEs like JANX007 could potentially deliver meaningful survival benefits beyond initial progression metrics.

Guggenheim also highlighted Janux’s strong financial position, noting the company has "$1bn in cash that management can deploy" to advance its therapeutic platform despite experiencing a significant stock drawdown of approximately 65% since December’s JANX007 update. The stock is currently trading near its 52-week low of $21.97, with a year-to-date decline of 57%. Get access to 10+ additional exclusive insights and real-time alerts with InvestingPro.

In other recent news, Janux Therapeutics has been the focus of analyst attention with Piper Sandler initiating coverage on the company with an Overweight rating and a price target of $42.00. This decision follows a period of weakened investor sentiment despite positive clinical data for JANX007 in prostate cancer. Similarly, Raymond James has also started coverage on Janux Therapeutics, giving it an Outperform rating and a higher price target of $65.00. The firm highlighted promising preliminary results for JANX007, noting its efficacy in higher doses for advanced-stage patients.

Additionally, Janux Therapeutics held its 2025 Annual Meeting of Stockholders, where several key proposals were voted on. The meeting resulted in the election of three Class I directors: David Campbell, Ph.D., Ron Barrett, Ph.D., and Winston Kung, who will serve until 2028. Other decisions included the ratification of the company’s independent registered public accounting firm and the approval of executive compensation. The frequency of future stockholder votes on executive pay was also established during the meeting.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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