Buy Rating Affirmed for Oric Pharmaceuticals Amid Promising Clinical Data and Strong Financial Position

Citi analyst Yigal Nochomovitz maintained a Buy rating on Oric Pharmaceuticals (ORIC – Research Report) yesterday and set a price target of $14.00.

Yigal Nochomovitz has given his Buy rating due to a combination of factors that suggest a promising outlook for Oric Pharmaceuticals. The first quarter of 2024 update provided by the company indicates that ORIC-944, a PRC2 inhibitor, showed promising monotherapy data in metastatic prostate cancer with a favorable safety profile and strong target engagement. Such initial data signal potential differentiation from competitors. Furthermore, the anticipation of clinical combination work for ORIC-944 in mid-2024 and the expected update from a Phase 1b program are seen as positive developments.

Adding to the optimism, Oric Pharmaceuticals has a competitive financial position with operational expenses coming in lower than expected for the first quarter, and a substantial cash reserve that is projected to last into late-2026. This financial stability is crucial as it supports the company’s ongoing research and development efforts. The slight adjustment in the target price to $14 from $15 reflects updated financial models but still indicates a significant expected share price return, further supporting the Buy rating. The comprehensive analysis by Nochomovitz underscores both the clinical and financial factors contributing to Oric Pharmaceuticals’ potential for growth.

Nochomovitz covers the Healthcare sector, focusing on stocks such as Lexicon Pharmaceuticals, Ardelyx, and Arvinas Holding Company. According to TipRanks, Nochomovitz has an average return of 12.1% and a 45.10% success rate on recommended stocks.

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Oric Pharmaceuticals (ORIC) Company Description:

ORIC Pharmaceuticals Inc is a clinical-stage biopharmaceutical company. It has a pipeline of therapies designed to counter resistance mechanisms in cancer by leveraging its expertise within three specific areas: hormone-dependent cancers, precision oncology, and key tumor dependencies. The company has product candidates namely, ORIC-101 and ORIC-533.