H.C. Wainwright lifts Bicara stock target to $45, maintains buy

Published 27/01/2025, 14:00
H.C. Wainwright lifts Bicara stock target to $45, maintains buy

On Monday, H.C. Wainwright analyst Robert Burns increased the price target on Bicara Therapeutics Inc (NASDAQ:BCAX) to $45.00 from $42.00, while reiterating a Buy rating on the company's shares. Currently trading at $11.61 with a market capitalization of $631.49 million, the stock sits near its 52-week low of $11.51. According to InvestingPro data, analysts maintain a strong bullish consensus on BCAX, with price targets ranging from $36 to $47. The revision followed Bicara's presentation of clinical trial data at the ASCO GI conference in San Francisco, CA, which took place over the weekend.

Bicara presented Phase 1/1b results from a dose-expansion cohort assessing the combination of ficerafusp alfa and Keytruda in patients with EGFR+ squamous cell carcinoma of the anal canal (SCAC) who had undergone previous chemotherapy but were naive to checkpoint inhibitors. The data revealed that the treatment combination resulted in a 28.6% objective response rate (ORR), with a notably higher 38.4% ORR in patients with liver metastasis.

The combination therapy achieved a median progression-free survival (mPFS) of 2.86 months, with a one-year PFS rate of 40.7%. Notably, patients with liver metastasis had a longer mPFS of 3.65 months compared to 2.62 months in those without. These results show a significant improvement over the 11% ORR and 15% 12-month PFS rate observed with Keytruda monotherapy in the KEYNOTE-158 trial.

In terms of safety, 46.4% of patients experienced a Grade 3 or higher treatment-related adverse event (TRAE), with Grade 3 elevations of ALT and AST liver enzymes occurring in 14% and 7% of patients, respectively. Treatment discontinuation due to TRAEs was necessary for 7.1% of the participants.

Burns highlighted the potential of SCAC as a driver of future upside to the firm's forecasts, despite the current financial model only including risk-adjusted revenues for ficerafusp alfa in first-line HPV- R/M HSCNN. After updating the discounted cash flow (DCF) valuation and accounting for the new data, Burns confirmed the Buy rating and the adjusted 12-month price target for Bicara Therapeutics. InvestingPro analysis reveals the company maintains a strong financial position with a current ratio of 36.01, indicating robust liquidity to fund its clinical developments. Subscribers can access 8 additional key financial insights and metrics about BCAX's financial health and market position.

In other recent news, Bicara Therapeutics has been the subject of positive assessments from several investment firms. H.C. Wainwright initiated coverage with a Buy rating, highlighting the potential of Bicara's primary asset, ficerafusp alfa, a bispecific antibody that targets both EGFR and TGF-β. This dual-targeting mechanism is designed to exert potent antitumor activity and is seen as a key factor in the valuation of Bicara.

The company's strategy to target additional indications with ficerafusp alfa, including squamous cell solid tumors, has also been noted. Other firms such as Cantor Fitzgerald, TD Cowen, Morgan Stanley (NYSE:MS), and Stifel have initiated coverage with positive ratings, citing the potential of ficerafusp alfa as a treatment for head and neck squamous cell carcinoma.

Cantor Fitzgerald projected that ficerafusp alfa could generate over $1 billion in peak sales. These recent developments underscore the growing recognition of Bicara's potential within the investment community.

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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