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On Thursday, H.C. Wainwright reaffirmed its positive stance on Zentalis Pharmaceuticals (NASDAQ:ZNTL), maintaining a Buy stock rating with a $10.00 price target. Trading at $1.76 with a market cap of $125 million, ZNTL has seen significant price volatility, with the stock down over 88% in the past year. The firm’s analysts highlighted the progress of Zentalis’ drug azenosertib in treating platinum-resistant ovarian cancer (PROC). According to InvestingPro data, four analysts have recently revised their earnings expectations upward for the upcoming period. The recent data from the DENALI Phase 2 trial was presented at the 2025 SGO Annual Meeting, demonstrating the drug’s effectiveness as a biomarker-driven therapy.
The updated results from Part 1b of the trial showed azenosertib, administered at a dose of 400 mg once daily on a 5:2 schedule, achieved an objective response rate (ORR) of 34.9% among patients with Cyclin E1+ tumors who were response-evaluable. This rate was based on 15 out of 43 patients, with a 95% confidence interval ranging from 21.0% to 50.9%. In the broader intent-to-treat population, which included 48 patients, the ORR was 31.3%, and the median duration of response (mDOR) was 6.3 months. This marked an improvement from previous data, which showed an mDOR of approximately 5.5 months, with ongoing responses at the time of data cutoff. While the company holds more cash than debt and maintains strong liquidity with a current ratio of 7.29, InvestingPro analysis indicates the company is quickly burning through its cash reserves.
The median progression-free survival (mPFS) in the Cyclin E1+ subgroup was notably maintained at 4.1 months. This duration surpasses the historical benchmarks set by chemotherapy in PROC, which typically range from 3.2 to 3.8 months of mPFS. These findings underscore azenosertib’s potential to improve the standard of care for patients with this challenging form of cancer.
Zentalis Pharmaceuticals’ commitment to advancing azenosertib and the promising trial outcomes have solidified H.C. Wainwright’s confidence in the company’s prospects. The firm’s reiterated Buy rating and price target reflect its expectation of Zentalis’ continued progress and potential market impact. With analyst targets ranging from $2.20 to $10.00, InvestingPro subscribers can access 12 additional exclusive insights about ZNTL’s financial health, valuation metrics, and growth potential to make more informed investment decisions.
In other recent news, Zentalis Pharmaceuticals has provided updates on its drug candidate, azenosertib, particularly in its application for treating Cyclin E1+ platinum-resistant ovarian cancer (PROC). The company reported an objective response rate (ORR) of approximately 35% in heavily pretreated patients, based on Part 1b of the DENALI study. Analysts from H.C. Wainwright reiterated a Buy rating with a $10 price target, reflecting optimism about the drug’s potential, while Jefferies adjusted its price target to $2.50, maintaining a Hold rating due to competitive concerns. Oppenheimer also revised its price target to $10, keeping a Perform rating, noting the drug’s efficacy but raising concerns about the duration of response and trial timelines. Zentalis has reached an agreement with the FDA on the design of the DENALI Part 2 study, with top-line data expected by late 2026. The company’s strategic refocusing, including a significant workforce reduction, aims to extend its cash runway into late 2027. As azenosertib progresses through various clinical studies, Zentalis remains committed to exploring its potential in other Cyclin E1-driven cancers. These developments indicate a significant therapeutic opportunity within the PROC subset, despite the cautious outlook from some analysts.
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