Guggenheim initiates ORIC Pharmaceuticals stock with Buy rating on cancer drug potential

Published 04/09/2025, 09:40
Guggenheim initiates ORIC Pharmaceuticals stock with Buy rating on cancer drug potential

Investing.com - Guggenheim initiated coverage of ORIC Pharmaceuticals (NASDAQ:ORIC) with a Buy rating and set a price target of $18.00. The company, currently valued at $1.03 billion, has seen its stock surge 38% over the past six months. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $12 to $25.

The research firm cited positive prospects for ORIC’s lead drug ORIC-944, a PRC2 inhibitor that follows Pfizer’s mevrometostat in the treatment of metastatic castration-resistant prostate cancer (mCRPC).

Guggenheim highlighted mevrometostat’s strong randomized Phase 2 data showing a 0.51 hazard ratio for radiographic progression-free survival (rPFS), which supports development of similar compounds in this drug class.

The firm noted that ORIC-944 has demonstrated comparable efficacy to mevrometostat in Phase 1 trials while potentially offering an improved safety profile due to lower dosing requirements.

Guggenheim believes ORIC’s differentiation strategy could include advantages in efficacy, safety, or novel partnerships with companies like Bayer or Johnson & Johnson for their androgen receptor pathway inhibitors, while Pfizer is using its own enzalutamide.

In other recent news, ORIC Pharmaceuticals has appointed Kevin Brodbeck, PhD, as Chief Technical Officer. This appointment comes as the company prepares for potential Phase 3 trials of its cancer treatment candidates, ORIC-944 and enozertinib (ORIC-114), expected in 2026. Jefferies has raised its price target for ORIC Pharmaceuticals to $23, maintaining a Buy rating, following the company’s focus on prioritizing resources for its ’944 mCRPC and ’114 NSCLC programs. These pivotal trials are also scheduled to commence in 2026. Additionally, Ladenburg Thalmann has initiated coverage of ORIC Pharmaceuticals with a Buy rating and a $15 price target. The firm highlighted the emerging profile of ORIC’s PRC2 inhibitor, ORIC-944, as a potential fast-follower in treating AR-experienced mCRPC. These developments reflect the company’s strategic focus on advancing its oncology programs.

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