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Investing.com - Stifel has lowered its price target on Janux Therapeutics (NASDAQ:JANX) to $38.00 from $46.00 while maintaining a Buy rating following the company’s JANX007 Phase 1 update. The current stock price of $33.99 sits well above its 52-week low of $21.73, though significantly below its high of $71.71, reflecting the stock’s high volatility (Beta of 2.82).
The firm noted some positive developments from Monday’s update, including a clear strategy for managing cytokine release syndrome (CRS) that has been mostly Grade 1 with predictable onset and duration. Stifel also highlighted increased confidence in JANX007’s radiographic progression-free survival outcomes and the correlation between PSA responses and treatment durability. InvestingPro data shows 8 analysts have revised their earnings upwards for the upcoming period, suggesting some optimism despite the company not being expected to turn profitable this year.
Despite these positives, Stifel expressed concern about the limited incremental patient data generated over the past 12+ months of dose optimization. Questions remain about the go-forward dosing strategy, including weekly versus bi-weekly administration and monotherapy versus combination approaches.
The firm cited investor concerns regarding Janux’s proximity to Phase 3 trial initiation in an increasingly competitive metastatic castration-resistant prostate cancer landscape, specifically mentioning Johnson & Johnson’s KLK2-PASenger trial as competitive pressure.
Stifel’s reduced price target primarily reflects lower probability of success for JANX007 due to execution-based risk, though the firm questioned the approximately 40% post-close drop in Janux shares, which implies a sub-$500 million fully-diluted enterprise value despite platform validation.
In other recent news, Janux Therapeutics reported positive interim results from its Phase 1 clinical program for JANX007, a PSMA-directed therapy for metastatic castration-resistant prostate cancer (mCRPC). The data revealed a radiographic progression-free survival of 7.9-8.9 months in heavily pre-treated patients, with high prostate-specific antigen response rates. Despite these results, Janux’s stock experienced a significant drop after hours, as investors appeared unimpressed with the efficacy metrics. Wolfe Research initiated coverage on Janux Therapeutics with a Peerperform rating, expressing concerns about the long-term efficacy of JANX007 due to quick rebounds in PSA levels. Additionally, Janux Therapeutics announced the departure of Byron Robinson, Ph.D., from his role as Chief Strategy Officer, a move the company described as a termination without "Cause." Furthermore, Janux plans to host a virtual event to discuss Phase 1a dose escalation data and Phase 1b expansion data for JANX007. These developments provide insights into the company’s current trajectory and investor sentiment.
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