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Monday, a Baird analyst maintained a positive outlook on Instil Bio Inc (NASDAQ:TIL) shares, reiterating an Outperform rating and a $180.00 price target. The analyst's optimism is rooted in Instil's recent announcement of their plans to advance the development of SYN-2510, a new therapy initiative.
Instil Bio revealed their intention to focus initial studies of SYN-2510 on non-small cell lung cancer (NSCLC) and triple-negative breast cancer (TNBC). The decision to target these specific cancers is backed by existing strong external evidence that supports the development of therapies that combine PD-1/L1 inhibitors with VEGF therapies.
The company's approach includes leveraging its collaboration with ImmuneOnco (HKEX:1541) to expedite the process towards achieving proof-of-concept readouts for these cancer indications. This collaboration is seen as a strategic move to enhance the development process for SYN-2510.
In discussions with Instil Bio's management, it was confirmed that the company is maintaining its current cash runway guidance, which projects financial stability beyond 2026. This financial forecast provides a measure of confidence in the company's ability to sustain its operations and research activities over the next few years.
The anticipated timeline for the United States Investigational New Drug (IND) submission for SYN-2510 is slated for late-2024. This marks a significant milestone in the drug's development pathway, moving it closer to potential clinical trials and regulatory review.
In other recent news, Instil Bio has seen significant shifts in its business operations and market outlook. H.C. Wainwright and Baird have both increased their price targets for Instil Bio, reflecting positive expectations for the company's cancer treatment, SYN-2510. Wainwright's new target stands at $120, a significant leap from the previous $40, while Baird has set its target at $180, up from $32.
These changes come in light of SYN-2510's potential success in the oncology market, particularly in treating extensive-stage small cell lung cancer (ES-SCLC) and non-small cell lung cancer (NSCLC). Wainwright projects peak unadjusted global sales of $1.3 billion by 2040 for ES-SCLC and $3.1 billion for NSCLC.
In contrast, Jefferies has downgraded its stock rating from Buy to Hold following Instil Bio's decision to halt the clinical development of its ITIL-306 program. In a significant restructuring move, Instil Bio also intends to close its UK operations by the end of 2024, with estimated costs reaching up to $5.5 million.
The company has entered into an exclusive license agreement with ImmuneOnco Biopharmaceuticals to develop and commercialize antibodies targeting PD-L1 and VEGF. This deal could potentially yield up to $2.1 billion for ImmuneOnco based on future milestones. Moreover, Instil Bio has secured a 15-year lease with AstraZeneca (NASDAQ:AZN) Pharmaceuticals for its facility in Tarzana, California.
Finally, in terms of governance, R. Kent McGaughy, Jr. and Dr. Gwendolyn Binder were reelected to the company's board of directors, and Deloitte & Touche LLP was ratified as its independent registered public accounting firm for the fiscal year ending December 31, 2024.
InvestingPro Insights
Instil Bio Inc (NASDAQ:TIL) has been a subject of investor attention due to recent developments. According to InvestingPro data, the company boasts a market capitalization of $414.49 million. Despite not being profitable over the last twelve months, Instil Bio holds more cash than debt on its balance sheet, which aligns with the company's stated financial stability beyond 2026. This financial resilience is critical as the company advances its development of SYN-2510.
InvestingPro Tips highlight that the stock has experienced significant returns, with a one-week price total return of 284.36% and a one-year price total return of 889.0%. This suggests strong investor confidence, possibly influenced by the strategic moves and collaborations mentioned in the article.
However, analysts from InvestingPro caution that the stock is currently in overbought territory according to the Relative Strength Index (RSI), and the company is expected to not be profitable this year. This information is particularly relevant for investors considering the timing of their investments in relation to the company's drug development milestones.
For those seeking a deeper analysis, InvestingPro offers additional tips on Instil Bio Inc, which can be found at: https://www.investing.com/pro/TIL.
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