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On Thursday, UBS analyst David Dai adjusted the price target for Nurix Therapeutics (NASDAQ:NRIX) to $30.00, a decrease from the previous $35.00, while reaffirming a Buy rating on the company's shares. Trading at $8.58, the stock has fallen significantly from its 52-week high of $29.56, with InvestingPro data showing the stock is currently in oversold territory. Dai's report followed Nurix's release of its first quarter financial results for 2025, as well as the latest updates on its corporate activities.
Nurix's lead drug candidate, bexobrutideg (NX-5948), is currently undergoing Phase 1b trial enrollment for the treatment of chronic lymphocytic leukemia (CLL). UBS anticipates that Nurix will disclose updated durability data, including Duration of Response (DoR) and Progression-Free Survival (PFS), in the second half of 2025. The firm views the 12.2 months median Duration of Response (mDOR) achieved by pirtobrutinib as a significant clinical benchmark for comparison.
The company also plans to initiate two registrational trials for bexobrutideg in CLL within the year. These will include a single-arm trial aimed at securing accelerated approval for third-line or higher treatments (3L+) post BTKi/BCLi CLL and a randomized confirmatory trial for second-line or higher treatments (2L+) CLL.
Furthermore, initial Phase 1 dose escalation data are expected in 2025 for two of Nurix's other drug candidates: NX-2127, designed for B cell lymphoma, and NX-1607, aimed at treating solid tumors. Dai notes that with these multiple data catalysts anticipated in 2025 and Nurix's stock trading at a 52-week low, there appears to be a significant asymmetric upside potential. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 6.26, though investors should note its rapid cash burn rate. For deeper insights into Nurix's financial health and detailed valuation metrics, check out the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The revision in the price target to $30 from $35 by UBS is attributed to the incorporation of increased operating expenses that Nurix is expected to incur due to the pivotal trials. Despite the reduction in the price target, UBS maintains a positive outlook on the stock with a Buy rating. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $16 to $41, suggesting significant potential upside from current levels. Based on InvestingPro's Fair Value analysis, the stock appears undervalued at current prices.
In other recent news, Nurix Therapeutics Inc . reported significant progress in its drug development efforts, particularly with its lead candidate, bexobrutideg, as it gears up for pivotal trials in chronic lymphocytic leukemia (CLL). The U.S. Food and Drug Administration has granted Orphan Drug Designation to bexobrutideg for Waldenstrom macroglobulinemia, a move expected in the first quarter of 2025. The company is also advancing its collaboration with Sanofi (NASDAQ:SNY), achieving milestones and extending a license for an undisclosed autoimmune program. Analysts from Stifel and Stephens have adjusted their price targets for Nurix, setting them at $35 and $30, respectively, while maintaining positive outlooks on the stock. Stifel emphasizes the potential of Nurix's product pipeline and strategic developments, while Stephens has updated its earnings per share forecasts for fiscal years 2025 and 2026. BTIG maintains a Neutral rating with a $35 target, highlighting upcoming updates at the European Hematology Association conference as key events for the company. Meanwhile, H.C. Wainwright continues to support a Buy rating with a $36 price target, noting the successful licensing agreement with Sanofi as a promising development in Nurix's autoimmune disease treatment initiatives. These developments reflect Nurix's ongoing efforts in drug discovery and its strategic collaborations to enhance its market position.
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