In a report released yesterday, Alec Stranahan from Bank of America Securities maintained a Buy rating on Springworks Therapeutics (SWTX – Research Report), with a price target of $45.00.
Alec Stranahan has given his Buy rating to Springworks Therapeutics’ stock due to a combination of factors. Primarily, the positive outcome of phase 2b ReNeu data for mirdametinib, a drug in development for NF1 patients, plays a significant role in his decision. The efficacy of the drug is promising, with high overall response rates in both adult and pediatric patients, surpassing the performance of its competitor, Koselugo. Additionally, mirdametinib has shown fewer treatment-emergent adverse events along with fewer dose interruptions, reductions, and discontinuations compared to Koselugo. This positions mirdametinib as a potential market leader if approved.
Also contributing to Stranahan’s positive rating is the potential market opportunity that mirdametinib presents as the first treatment for NF1-PN adult patients. Given the current sales of Koselugo, this could mean a projected peak sales of around $1.5B for mirdametinib, assuming approval in both the pediatric and adult markets and a modest 8% peak market share in NF1. Moreover, the product’s depth of response and patient-reported outcomes are seen as key differentiators, further enhancing its potential for successful commercial uptake. Thus, SpringWorks’ goal of introducing two approved assets onto the market in the next 18 months is appearing increasingly feasible, leading Stranahan to maintain his Buy rating and a price objective of $45.
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Springworks Therapeutics (SWTX) Company Description:
Springworks Therapeutics, Inc. operates as a clinical-stage biopharmaceutical company. It identifies pathways for drug development for patients with severe rare diseases and cancer. The firm’s products include Nirogacestat, Mirdametinib and BGB-3245. The company was founded in August 2017 and is headquartered in Stamford, CT.
Read More on SWTX:
- SpringWorks Therapeutics Announces Positive Topline Results from the Phase 2b ReNeu Trial of Mirdametinib in NF1-PN
- SpringWorks Therapeutics price target lowered to $58 from $66 at H.C. Wainwright
- SpringWorks Therapeutics reports Q3 EPS ($1.27), consensus ($1.33)
- SpringWorks Therapeutics Reports Third Quarter 2023 Financial Results and Recent Business Highlights
- SpringWorks Therapeutics to present additional data from Phase 3 DeFi trial
