Nuvalent (NUVL) has received a new Buy rating, initiated by BMO Capital analyst, Etzer Darout.
Etzer Darout has given his Buy rating due to a combination of factors, most notably Nuvalent’s novel ALK-selective tyrosine kinase inhibitor (TKI), NVL-655. This inhibitor offers a promising solution to the challenges associated with current ALK TKIs, including treatment resistance, brain metastases, and adverse effects on the central nervous system (CNS). Furthermore, NVL-655 has shown compelling results in heavily pretreated ALK+ patients, demonstrating its potential to be a leading treatment in the field.
The decision to increase the target price for NUVL to $73 from $52 is based on the initial dose escalation data for NVL-655, which suggests a best-in-class potential in ALK+ NSCLC. The abstract released recently indicates partial responses in 45% of all evaluable ALK-positive NSCLC patients who received NVL-655, with no observed CNS toxicity. Additionally, the potential success of NVL-655 moving into second line and ultimately first line ALK+ NSCLC treatment contributes to this positive outlook. Darout anticipates that more mature data to be presented on October 13 will further validate NVL-655’s value proposition, which is expected to drive share upside.
Darout covers the Healthcare sector, focusing on stocks such as Exelixis, AstraZeneca, and ImmunoGen. According to TipRanks, Darout has an average return of 15.9% and a 44.36% success rate on recommended stocks.
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Nuvalent (NUVL) Company Description:
Nuvalent Inc is a biopharmaceutical company focused on creating precisely targeted therapies for patients with cancer, designed to overcome the limitations of existing therapies for clinically proven kinase targets.
Read More on NUVL:
- Leerink biotech analysts hold an analyst/industry conference call
- Nuvalent initiated with a Buy at Stifel
- Nuvalent, Olema, Oric added to ‘Catalyst Watch List’ at JPMorgan
- Nuvalent initiates Phase 2 portion of ARROS-1 trial
- Nuvalent Highlights Pipeline Progress and Reports Second Quarter 2023 Financial Results
