Wolfe Research initiates coverage on ORIC Pharmaceuticals stock with Peerperform rating

Investing.com - Wolfe Research initiated coverage on ORIC Pharmaceuticals (NASDAQ:ORIC) with a Peerperform rating on Monday. The biopharmaceutical company, currently trading at $12.06, has seen impressive momentum with a 158.99% price return over the past six months.

The research firm expressed cautious optimism about the company’s PRC2 inhibition program in its analysis of the biopharmaceutical company. According to InvestingPro data, ORIC maintains strong liquidity with a current ratio of 14.65, holding more cash than debt on its balance sheet.

Wolfe Research noted that enthusiasm for PRC2 inhibition has been largely driven by Pfizer’s mevrometostat data, but suggested those results may have been structurally biased due to ECOG imbalances between treatment arms.

The firm indicated it would adopt a more optimistic stance if Pfizer ’s radiographic progression-free survival (rPFS) results are confirmed in Phase III with positive trends in overall survival, expected in 2026.

Wolfe Research also stated it would view ORIC more favorably if the company’s Oric-944 demonstrates comparable rPFS figures to mevrometostat in its next update.

In other recent news, ORIC Pharmaceuticals has reported promising results from its Phase 1b trial of ORIC-944 for metastatic castration-resistant prostate cancer. The trial showed a 55% PSA50 response rate and a 20% PSA90 response rate, with significant reductions in circulating tumor DNA for 76% of patients. Additionally, ORIC published a peer-reviewed paper in the journal Cancer Research on its drug enozertinib, highlighting its potential in treating non-small cell lung cancer. The paper noted enozertinib’s selectivity and potency, with a complete response observed in a patient case.

Analyst firms have also weighed in on ORIC Pharmaceuticals. Cantor Fitzgerald reiterated an Overweight rating, suggesting the company is undervalued, particularly in regard to ORIC-944’s potential. Guggenheim initiated coverage with a Buy rating, citing optimism for ORIC-944 in prostate cancer treatment. These developments reflect growing interest in ORIC’s research and its potential impact on cancer treatment.

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