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Investing.com - UBS raised its price target on Nuvalent (NASDAQ:NUVL) to $114.00 from $100.00 on Wednesday, while maintaining a Buy rating on the biopharmaceutical company’s stock. The $5.58 billion market cap company, which according to InvestingPro analysis appears overvalued at current levels, has attracted significant analyst attention with price targets ranging from $100 to $140.
The price target increase follows Nuvalent’s report of pivotal Phase 2 ARROS-1 data for zidesamtinib in ROS1+ non-small cell lung cancer (NSCLC). The drug demonstrated broad and superior activities compared to approved tyrosine kinase inhibitor therapies in previously treated patients. InvestingPro data shows the company maintains a strong financial position with a current ratio of 14.48, indicating robust liquidity to support its drug development programs.
UBS highlighted zidesamtinib’s significantly longer duration of therapy in TKI pre-treated patients compared to competing treatments. The firm noted the drug’s safety profile was clean with no neurotoxicity, low rates of Grade 3+ treatment-emergent adverse events, and low rates of dose reduction and discontinuation.
Preliminary analysis in first-line (TKI-naïve) patients showed an 89% objective response rate and 96% 12-month duration of response, which UBS indicated was better than competitor taletrectinib’s performance. This data further de-risks the pivotal first-line data readout expected in 2026.
UBS increased zidesamtinib’s probability of success in first-line ROS1+ NSCLC to 60% from 40% previously, viewing the drug as an underappreciated asset with $1.2 billion peak revenue potential. Nuvalent remains on track for a New Drug Application submission in July with potential approval in 2026. While the company currently holds more cash than debt, InvestingPro subscribers can access detailed financial health metrics and 10 additional ProTips that provide crucial insights for evaluating this emerging biotech player.
In other recent news, Nuvalent, Inc. is preparing to submit a New Drug Application for its lung cancer drug, zidesamtinib, targeting the third quarter of 2025 after promising results from the ARROS-1 Phase 1/2 trial. The trial demonstrated a 44% objective response rate in patients previously treated with tyrosine kinase inhibitors, with a notable 51% response rate in those who had only one prior treatment. The drug also showed significant activity against tumors with the ROS1 G2032R resistance mutation, with a 54% response rate. Additionally, Nuvalent has appointed Christy Oliger, a former Genentech executive, to its Board of Directors, enhancing its leadership as it transitions toward potential commercialization. Meanwhile, board member Emily Conley has announced her resignation, effective at the company’s 2025 annual meeting. Furthermore, Nuvalent published preclinical data on zidesamtinib, highlighting its efficacy against drug-resistant mutations and brain tumors. This development is part of Nuvalent’s broader strategy to advance its pipeline of cancer treatments, including upcoming trials for other investigational drugs.
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