In a report released today, Soumit Roy from JonesTrading maintained a Buy rating on ESSA Pharma (EPIX – Research Report), with a price target of $18.00.
Soumit Roy has given his Buy rating due to a combination of factors concerning ESSA Pharma’s promising pipeline and potential market opportunities. Roy highlights the company’s lead program, masofaniten, targeting 1L metastatic castrate resistant prostate cancer (mCRPC), which has an estimated adjusted peak sales of $500 million by 2037. The anticipation of multiple data readouts in the next 12 months, particularly the updated Phase 1 data with masofaniten in combination with Xtandi and the initial Phase 2 randomized data, underpin the optimistic outlook.
Additionally, Roy notes that ESSA Pharma’s stock is trading at approximately one times the sales multiple based on adjusted peak sales in 2037, which appears undervalued considering the potential expansion of the addressable patient population with positive data in metastatic castrate sensitive prostate cancer (mCSPC). The company’s robust cash position, which is expected to support operations beyond 2025, and the forthcoming data points in the second half of 2024, serve as key catalysts that could provide upward momentum to the stock price. Hence, the Buy rating reflects the significant clinical milestones ahead and the perceived undervaluation of ESSA Pharma’s market potential.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EPIX in relation to earlier this year.
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ESSA Pharma (EPIX) Company Description:
ESSA Pharma, Inc. engages in the development of small molecule drugs for prostate cancer. It focuses on producing drugs which selectively block the amino-terminal domain (NTD) of the androgen receptor (AR), potentially overcoming the known AR-dependent resistance mechanisms of castration-resistant prostate cancer (CRPC), and providing CRPC patients with the potential for increased progression-free and overall survival. The company was founded by Marianne D. Sadar and Raymond J. Andersen on January 6, 2009 and is headquartered in Vancouver, Canada.
