MedPath

Jefferies Upgrades Instil Bio, Highlighting Potential of SYN2510 in Cancer Treatment

Jefferies has upgraded Instil Bio, citing the promising potential of its investigational cancer drug SYN2510. The upgrade follows significant clinical trial updates and a bullish outlook on the PD-(L)1xVEGF class, with Jefferies estimating a market potential of over $40 billion. Instil Bio's stock saw a substantial increase, reflecting the industry's optimism towards SYN2510's clinical and commercial prospects.

Jefferies Upgrades Instil Bio, Highlighting Potential of SYN2510 in Cancer Treatment

Jefferies has recently upgraded Instil Bio, shifting its stance from Hold to Buy with a price target of $52, indicating a significant upside from its previous target of $11. This optimistic outlook is largely driven by the potential of Instil Bio's investigational cancer drug, SYN2510, which is part of the PD-(L)1xVEGF class. The PD-(L)1xVEGF class has been a focal point of interest, with Jefferies estimating its market potential to exceed $40 billion, akin to the PD-(L)1 class.

Clinical Trial Updates and Market Impact

The upgrade comes on the heels of Summit Therapeutics' Phase 3 HARMONi-2 trial data for ivonescimab, which demonstrated a statistically significant improvement in progression-free survival compared to monotherapy with Merck & Co Inc's Keytruda (pembrolizumab). This development not only sparked industry buzz but also led to a notable increase in stock prices for Summit Therapeutics, BioNTech SE, and Instil Bio, with the latter experiencing a surge of approximately 500%.

Future Catalysts and Industry Optimism

Looking ahead, Jefferies analyst Kelly Shi anticipates continued excitement in the PD-(L)1xVEGF space, driven by two key upcoming catalysts: the overall survival data from the Ivonescimab HARMONi-2 trial, expected by the end of 2025 or early 2026, and the first global Phase 3 data, anticipated in mid-2025. Shi expects positive results from these trials to further attract business development interest in this drug class.

SYN2510's Promising Role

SYN2510, a PD-L1xVEGF bispecific antibody, is being developed in collaboration with ImmuneOnco Biopharmaceuticals (Shanghai) for front-line non-small cell lung cancer and front-line triple-negative breast cancer. Its global registrational strategy, announced in September, positions SYN2510 as a promising contender in its field, with significant potential driven by clinical data updates and the growing business development interest in the PD-(L)1xVEGF class.

Market Confidence and Strategic Deals

The confidence in SYN2510's mechanism of action is further bolstered by strategic deals in the industry, including BioNTech's Biotheus deal for BNT327 and Merck's LM-299 deal. These developments, along with three deals in 2024 totaling an upfront of $1.4 billion and a deal value of $6.4 billion, underscore the industry's belief in the potential of the PD-(L)1xVEGF class.

Conclusion

Jefferies' upgrade of Instil Bio reflects a broader industry optimism towards the PD-(L)1xVEGF class and, specifically, the potential of SYN2510 in revolutionizing cancer treatment. With significant clinical trial updates on the horizon and a robust strategic partnership, Instil Bio is poised for a transformative impact on the pharmaceutical landscape.
Subscribe Icon

Stay Updated with Our Daily Newsletter

Get the latest pharmaceutical insights, research highlights, and industry updates delivered to your inbox every day.

Related Topics

PDS Biotech's VERSATILE-003 Phase 3 Trial for HPV16-Positive Head and Neck Cancer to Start Q1 2025

PDS Biotech reaffirms the initiation of the VERSATILE-003 Phase 3 clinical trial in Q1 2025 for HPV16-positive recurrent/metastatic head and neck squamous cell carcinoma.
The VERSATILE-003 trial will evaluate Versamune® HPV in combination with pembrolizumab as a first-line treatment option.

Orchestra BioMed's BACKBEAT Trial Launch Drives 40% Stock Surge Amid Promising Cardiovascular Pipeline

Orchestra BioMed Holdings has initiated patient enrollment for its pivotal BACKBEAT study evaluating AVIM therapy for hypertension in pacemaker patients, driving a 40% increase in stock value. The company's strong clinical progress, backed by strategic partnerships with Medtronic and Terumo Corporation, positions it well in the expanding cardiovascular therapeutics market projected to reach $540 billion by 2029.

Jefferies Initiates Coverage on Rhythm Pharmaceuticals with Bullish Outlook on Obesity Drug Pipeline

Jefferies has initiated coverage of Rhythm Pharmaceuticals with a Buy rating and an $80 price target, citing strong potential in the hypothalamic obesity market. The firm projects potential peak sales growth from $500M to $3B, with particular optimism around the company's second-generation drugs that have patent protection extending into the 2040s.

Ascendis Pharma's Promising Growth Prospects: Buy Rating Backed by Positive Clinical Results

Citi's David Lebowitz maintains a Buy rating on Ascendis Pharma, citing positive clinical trial results for TransCon hGH and expected growth prospects, with a price target of $200.00.

Argenx's Myositis Trial Data Prompts Optimistic Outlook from Jefferies

Argenx reported positive data across all myositis subsets in a recent trial, showing clear signals in both primary and secondary endpoints, including time to response.
Jefferies reaffirmed its Buy rating on argenx, raising the price target to $707.00, citing the promising trial updates and the potential for quick adjustments to the Phase 3 study.

Biopharma Sector Shows Recovery: Bristol-Myers Squibb and Gilead Lead Market Gains

The biopharmaceutical sector is showing signs of recovery, with a 2% rise in combined market capitalization among the top 20 global companies.
Bristol-Myers Squibb led the recovery with a 24.6% increase in market capitalization, driven by the FDA approval of Cobenfy for schizophrenia.

Biofrontera's Ameluz Demonstrates High Efficacy in Phase III sBCC Trial

Biofrontera's Ameluz-PDT therapy met the primary endpoint, showing 65.5% success in complete clearance of superficial basal cell carcinoma (sBCC) lesions, compared to 4.8% with placebo.
The Phase III trial demonstrated that 75.9% of participants treated with Ameluz-PDT achieved complete histological clearance, versus 19% in the placebo group.

Biofrontera's Ameluz Demonstrates Success in Phase III sBCC Trial, Stock Surges

Biofrontera's Ameluz-PDT therapy met the primary endpoint in a Phase III trial for superficial basal cell carcinoma (sBCC), showing significant clinical and histological clearance.
The Ameluz-PDT treatment achieved a 65.5% success rate compared to 4.8% in the placebo group, marking a substantial improvement in sBCC lesion clearance.

ImmunityBio Launches Phase 1 Trial of CD19 t-haNK Cell Therapy for Non-Hodgkin Lymphoma

ImmunityBio initiated a Phase 1 trial (QUILT 106) in South Africa to evaluate CD19 t-haNK cell therapy for non-Hodgkin lymphoma.
The trial will enroll up to 100 patients by early 2025, testing the therapy alone and in combination with rituximab.

Travere Therapeutics' Filspari Receives Full FDA Approval for IgAN Treatment, Expanding Patient Access

Travere Therapeutics' Filspari gains full FDA approval for IgAN, removing prior UPCR restrictions and broadening treatment access.
KDIGO guidelines now recognize Filspari as a foundational IgAN therapy, supporting its role in managing the disease.

Reference News

[1]
Bullish Outlook On Instil Bio's Investigational Cancer Drug: Jefferies Sees Over 300% Stock Upside
benzinga.com · Jan 7, 2025

Jefferies upgraded Instil Bio, highlighting a strong 2024 for the PD-(L)1xVEGF class. Summit Therapeutics' Phase 3 trial...

© Copyright 2025. All Rights Reserved by MedPath
HomeTerms & ConditionsPrivacy Policy