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On Thursday, RBC Capital Markets adjusted its stance on shares of Pyxis Oncology Inc. (NASDAQ: PYXS), raising the price target to $10 from $7, while maintaining an Outperform rating on the stock. The revision followed the release of initial clinical data from Pyxis Oncology's trial of the '201 ADC in an oncology basket study.
The company reported that '201 ADC showed promising efficacy, with 12 responses across six different tumor types. The drug's potency was particularly noted in HNSCC (head and neck squamous cell carcinoma).
Despite some safety concerns that may have affected the stock's performance, the analyst from RBC Capital believes that the overall drug profile indicates it is well tolerated, with no related Grade 5 adverse events and fewer instances of toxicities commonly associated with other ADCs, such as pneumonitis, ocular toxicity, and neuropathy.
The data are preliminary, with a limited number of patients in each subgroup, but according to RBC Capital, '201 ADC has shown sufficient potential to warrant further development in multiple high-value indications. The price target adjustment to $10 reflects updates to the firm's model based on the recent clinical findings.
Pyxis Oncology's focus on developing novel anti-cancer therapies seems to be gaining traction with this latest clinical update, which could potentially pave the way for the company to address a range of oncological needs in the future. The Outperform rating suggests that RBC Capital anticipates the stock to perform better than the average total return of stocks in the analyst's coverage universe over the next 12 to 18 months.
In other recent news, Pyxis Oncology has made significant strides in its business operations. The pharmaceutical company recently expanded its equity and incentive plan by adding 5.5 million shares, a move approved by stockholders in a virtual meeting. This decision is a part of the company's recent developments that aim to bolster its business framework.
Pyxis Oncology's recent financial performance met analysts' expectations, reporting no revenues for the quarter ending June 2024. However, the company's net loss of $0.29 per share was less than the anticipated loss of $0.34 per share. H.C. Wainwright estimates that Pyxis will generate revenues of $16 million and incur a net loss of $0.89 per share in the fiscal year 2024.
The company also sold royalty rights for Beovu® and another asset to Novartis AG (SIX:NOVN) for $8 million, which will be used to advance the development of its lead Antibody-Drug Conjugate (ADC) asset, PYX-201.
In addition, the annual stockholders' meeting resulted in the election of new board members and the ratification of Ernst & Young LLP as the company's independent auditor for the fiscal year ending December 31, 2024.
Analysts have maintained a positive outlook on Pyxis Oncology. H.C. Wainwright, Stifel, Jefferies, and RBC Capital have all given the company a Buy or Outperform rating, highlighting the potential of the company's ADC mechanism and PYX-201.
InvestingPro Insights
Recent data from InvestingPro provides additional context to Pyxis Oncology's (NASDAQ: PYXS) current financial position and market performance. Despite the promising clinical data and RBC Capital's optimistic outlook, InvestingPro Tips highlight that Pyxis is "quickly burning through cash" and is "not profitable over the last twelve months." This aligns with the company's developmental stage and the significant investments required for clinical trials.
However, it's worth noting that Pyxis "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it advances its pipeline. The company's market cap stands at $227.16 million, reflecting investor interest in its potential.
Interestingly, while the stock has experienced a "high return over the last year" with a 167.13% price total return, it has recently taken a "big hit over the last week" with a -10.75% return. This volatility is not uncommon for biotech stocks, especially following significant clinical data releases.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into Pyxis Oncology's financial health and market position.
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