On Thursday, Stifel initiated coverage on ORIC Pharmaceuticals (NASDAQ:ORIC) with a Buy rating and set a price target of $20.00. The firm highlighted the company's potential in the market for prostate cancer treatments, particularly focusing on its ORIC-944 product, which is expected to enter phase 3 trials in 2025.
ORIC Pharmaceuticals is gaining attention for its innovative approach to treating metastatic castration-resistant prostate cancer (mCRPC). The company's lead product, ORIC-944, utilizes PRC2 inhibition in combination with androgen receptor pathway inhibitors (ARPIs).
Stifel noted that despite the lack of randomized data, the existing phase 1 combination data and interest from large pharmaceutical companies suggest a favorable risk/reward scenario for investors.
The firm further pointed out that PRC2 inhibition could mirror the success of the last decade’s ARPI class, which achieved approximately $5 billion in mCRPC sales. This is due to its profile as a potentially safe, oral therapy option.
In addition to ORIC-944, ORIC Pharmaceuticals is developing a second asset, an EGFR TKI, which is anticipated to provide interpretable phase 1b data in the first half of 2025. Despite the competitive landscape for this category of treatment, Stifel remarked on the drug’s unique approach to CNS activity, which may contribute to its value proposition in the market.
ORIC Pharmaceuticals is positioned to potentially offer significant advancements in the treatment of prostate cancer, with Stifel's coverage initiation reflecting a positive outlook on the company's stock and therapeutic developments.
In other recent news, ORIC Pharmaceuticals has been the focus of several significant developments. Oppenheimer has revised down ORIC's price target from $17 to $15, while maintaining an Outperform rating. This adjustment comes ahead of the company's fourth fiscal quarter results, with projections of a year-over-year increase of 5.9% and a quarter-over-quarter rise of 5.6%.
Further, ORIC Pharmaceuticals has initiated dosing of ORIC-944 in a Phase 1b trial for metastatic prostate cancer, in collaboration with Bayer and Janssen Research & Development. This trial aims to evaluate the safety and efficacy of the drug in combination with others.
Additionally, Citi has reduced its price target for ORIC from $15 to $14, maintaining a 'Buy' rating, following insights into future clinical developments. These include the combination trials for ORIC-944 and the anticipated release of updated Phase 1b data for another drug candidate, ORIC-114, in the first half of 2025.
