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On Monday, JMP Securities reaffirmed its Market Outperform rating on Nuvation Bio Inc (NYSE:NUVB) with a steady price target of $6.00, significantly above the current trading price of $2.12. The $721 million market cap company has seen its shares decline nearly 8% over the past week. The endorsement comes as Nuvation Bio shared a subgroup analysis from its TRUST I/II studies, demonstrating consistent efficacy in treating both Asian and non-Asian patients.
The analysis is particularly significant as it precedes the Prescription Drug User Fee Act (PDUFA) date set for June 23, 2025. According to InvestingPro data, Nuvation Bio maintains a strong liquidity position with a current ratio of 9.01 and holds more cash than debt on its balance sheet. The PDUFA date is a critical milestone for Nuvation Bio, as it is when the U.S. Food and Drug Administration (FDA) is expected to make a decision on the approval of the company’s drug.
JMP Securities highlighted the importance of the subgroup analysis, noting that the results are promising and reinforce the firm’s confidence in the potential market approval. The analyst from JMP Securities stated, "Nuvation Bio (NUVB) presented subgroup analysis from TRUST I/II, highlighting consistent efficacy between Asian and non-Asian patients, which bodes well ahead of the PDUFA on June 23." InvestingPro analysis reveals that while the company is currently not profitable, analyst targets range from $5 to $10, suggesting significant upside potential if approval is granted.
The firm’s valuation of Nuvation Bio’s stock remains grounded in a risk-adjusted, discounted cash flow (DCF) model, which supports their $6 price target. As the PDUFA date approaches, investors are likely to keep a close watch on any developments that may influence the FDA’s decision.
Nuvation Bio’s performance in the market leading up to the PDUFA will be influenced by investor sentiment regarding the outcome of the FDA review. The company’s recent updates and JMP Securities’ reiteration of their rating and price target are essential factors for shareholders to consider.
In other recent news, Nuvation Bio Inc. reported its Q1 2025 earnings, revealing an EPS of -0.16, which slightly missed the forecast of -0.15. The company’s revenue was recorded at $3.08 billion, significantly underperforming against the expected $800 million. Despite the earnings miss, Nuvation Bio secured non-dilutive financing of $250 million, which strengthens its cash position to $461.7 million. The company is focused on the potential FDA approval of its lead asset, talotrectinib, for non-small cell lung cancer, with a decision expected by June 2025.
Additionally, Nuvation Bio held its Annual Meeting of Stockholders, where Kathryn E. Falberg and David Hung, M.D. were elected as Class A and Class B directors, respectively. The stockholders also approved the appointment of KPMG LLP as the independent registered public accounting firm and ratified the executive compensation package. Meanwhile, Citizens JMP highlighted Nuvation Bio in its industry report for key presentations at the 2025 American Society of Clinical Oncology (ASCO) annual meeting, with a price target of $6.
These developments indicate a strategic focus on advancing Nuvation Bio’s clinical pipeline and preparing for potential commercial launches. The company’s ongoing investments in pre-commercial activities have contributed to the increased net loss, but strong clinical trial results for talotrectinib could bolster future growth. Analysts and investors are closely monitoring Nuvation Bio’s progress, especially regarding the potential approval and market introduction of talotrectinib.
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