Stifel maintains Buy on Bicara stock with $47 target

On Monday, Stifel analysts reiterated a Buy rating on Bicara Therapeutics Inc (NASDAQ:BCAX), maintaining a $47.00 price target. Trading at $11.84, the stock currently sits near its 52-week low of $11.51, while analysts maintain a strong buy consensus with targets ranging from $36 to $47. According to InvestingPro, the company maintains a FAIR financial health score, with more cash than debt on its balance sheet. The decision followed a recent poster presentation at the ASCO-GI meeting over the weekend, which provided additional details on the Phase 1/1b dose-expansion cohort study. The study evaluates the combination of ficerafusp alfa and pembrolizumab in treating squamous cell anal carcinoma (SCAC) patients who are immunotherapy-naïve and chemotherapy-refractory.

The analysts at Stifel noted that the safety and efficacy data align with their initial impressions from last week's abstract publication, adding that the depth and durability of the responses presented at the meeting are encouraging. They pointed out that the trend observed in the data appears to be in line with that seen in first-line HPV-negative squamous cell carcinoma of the head and neck (SCCHN), despite some limitations in the data.

The report mentioned that a correlation between patient baseline characteristics, such as PD-L1 expression status and prior lines of therapy, and the clinical outcomes of the ficerafusp/pembrolizumab combination would have been beneficial. Such data would help in differentiating it from the KEYNOTE-158 chemo-refractory/intolerant SCAC expansion cohort data.

Looking ahead, Stifel analysts are anticipating additional data disclosures in the first half of 2025. These include monotherapy ficerafusp dose-expansion data in second-line and beyond cutaneous squamous cell carcinoma (cSCC) and, more importantly, updated ficerafusp/pembrolizumab dose-expansion data in first-line SCCHN, which will include two-year overall survival (OS) figures.

The analysts concluded that Bicara Therapeutics' current market valuation, with an enterprise value (EV) of approximately $200 million, is difficult to rationalize. They believe this presents an opportunity for investment, given the upcoming data disclosures that could serve as catalysts. The stock has experienced significant pressure, dropping over 50% in the past six months, while maintaining a strong current ratio of 36.01. InvestingPro subscribers have access to over 10 additional investment tips and comprehensive financial analysis tools to evaluate biotech opportunities like BCAX more effectively.

In other recent news, Bicara Therapeutics reported encouraging results from a Phase 1/1b trial of its cancer therapy, ficerafusp alfa, combined with pembrolizumab. The trial demonstrated a confirmed overall response rate of 25.0%, including six partial responses and one complete response. In addition, the trial showed a median progression-free survival of 2.9 months, with a 12-month progression-free survival rate of 40.7% among 27 evaluable patients.

Investment firms have responded positively to these developments, with H.C. Wainwright analyst Robert Burns raising the price target on Bicara Therapeutics to $45 from $42, while maintaining a buy rating. Other firms such as Cantor Fitzgerald, TD Cowen, Morgan Stanley (NYSE:MS), and Stifel have initiated coverage with positive ratings, citing the potential of ficerafusp alfa as a treatment for head and neck squamous cell carcinoma.

These recent developments underscore the growing recognition of Bicara's potential within the investment community. The company's robust current ratio of 36.01 and minimal debt exposure support its ability to advance clinical development programs. However, these are just recent developments and should be considered in the larger context of the company's overall performance and future plans.

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