Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Leerink Partners raised its price target on Nuvalent (NASDAQ:NUVL) to $140.00 from $125.00 on Tuesday, while maintaining an Outperform rating on the stock.
The firm cited zidesamtinib’s "best in class profile" in the competitive ROS1 landscape, highlighting the drug’s "unprecedented durability and tolerability" that could potentially make it a blockbuster treatment for ROS1+ tumors across all therapy lines. The drug has also shown significant activity against intracranial lesions.
Leerink Partners noted that zidesamtinib demonstrated a 51% overall response rate and 93% 12-month duration of response in patients previously treated with crizotinib or entrectinib only, compared to repotrectinib’s 38% response rate and 48% 12-month duration in similar patients. The firm emphasized zidesamtinib’s more tolerable profile regarding CNS toxicities.
Preliminary data in 35 TKI-naive patients treated by August 31, 2024, showed an 89% overall response rate, 96% 12-month or longer duration of response, and 83% intracranial overall response rate, which Leerink described as "unprecedented activity and durability."
The research firm projects zidesamtinib will become the first-line standard of care with approximately $1.6 billion in peak revenues, adding that Nuvalent plans a rolling submission that should allow for a line-agnostic label.
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