On Friday, Stifel has increased the price target for MacroGenics (NASDAQ:MGNX) shares to $29, up from the previous $17, while maintaining a Buy rating. The upward revision reflects a positive outlook ahead of the anticipated disclosures at the upcoming American Society of Clinical Oncology (ASCO) meeting.
The biopharmaceutical company, which focuses on creating innovative monoclonal antibody-based therapeutics for the treatment of cancer, has seen its shares surge more than fourfold in less than five months. This rally is attributed to several strategic moves by the company, including the over-enrollment in its TAMARACK trial, which now has 177 participants, up from the approximately 150 initially reported.
MacroGenics has expanded the TAMARACK development program to include dose-expansion cohorts in more than five additional tumor types. Additionally, the company has standardized the dosing schedule for its lorigerlimab/vobra-duo to once every four weeks and is advancing its fourth B7-H3-targeted agent into clinical trials through MGC026.
Stifel's optimistic stance is also based on the valuation benchmarks set by other assets in the metastatic castration-resistant prostate cancer (mCRPC) space, which are focused on antibody-drug conjugates (ADCs) and T-cell engagers (TCEs) targeting the competitive PSMA space.
The revised price target incorporates a higher probability of success (POS) for vobra-duo, now at 45%, up from the previous 40%. The U.S. peak sales estimates for vobra-duo have also been raised to approximately $1.3 billion from $0.8 billion.
These figures are based on a conservative assumption of 25% peak market penetration and an approximate six to seven months duration of treatment (DOT).
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