Akash Tewari, an analyst from Jefferies, reiterated the Buy rating on Zentalis Pharmaceuticals (ZNTL – Research Report). The associated price target is $42.00.
Akash Tewari’s Buy rating on Zentalis Pharmaceuticals is due to several factors. Firstly, he notes the company’s recent Q3 results, which included a positive outcome in mono PROC with an objective response rate (ORR) of 37% and median progression-free survival (mPFS) of around 6.5 months. This further validates the effectiveness of DNA Damage Response (DDR) agents, as the response rate multiplied by two approximately equals the progression-free survival. This dynamic, according to Tewari, is not observed with Antibody-Drug Conjugates (ADCs).
However, Tewari also mentions two mixed datapoints – the shift to first-line (1L) maintenance PSOC and the discontinuation of Zn-d5’s amyloidosis development. Despite struggling to find a direct comparison for how ZNTL’s WEE1 would perform in a 1L maintenance setting, Tewari acknowledges that even as a mono agent, ZN-03 could be a competitive drug in PROC with a progression-free survival that’s competitive with ADCs. The decision to halt ZN-d5’s development, while not surprising, was not based on safety but rather the size of the opportunity versus the investment required. Despite these mixed datapoints, Tewari maintains his Buy rating, indicating his overall positive outlook for Zentalis Pharmaceuticals.
Tewari covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Merck & Company, and Alkermes. According to TipRanks, Tewari has an average return of 16.3% and a 46.40% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $38.00 price target.
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Zentalis Pharmaceuticals (ZNTL) Company Description:
Zentalis Pharmaceuticals LLC is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics targeting fundamental biological pathways of cancers. It uses drug discovery engine, which it refers to as Integrated Discovery Engine, to identify targets and develop small molecule new chemical entities, or NCEs, with properties that it believes could result in potentially differentiated product profiles. The company’s product candidate, ZN-c5, is an oral selective estrogen receptor degrader, or SERD, currently in a Phase 1/2 clinical trial for the treatment of estrogen receptor positive, human epidermal growth factor receptor 2-negative, or ER+/HER2-, advanced or metastatic breast cancer. Its other products include ZN-c3, ZN-d5, and ZN-e4.
Read More on ZNTL:
- Zentalis CSO Kevin Bunker to step down, Mark Lackner to succeed
- Zentalis announces updated data from Phase 1 trial of azenosertib
- Zentalis expects cash to fund operations into 2026
- Zentalis reports Q3 EPS (79c), consensus (91c)
- Zentalis Pharmaceuticals Reports Third Quarter 2023 Financial Results and Operational Updates
