On Tuesday, Citi adjusted its outlook for ORIC Pharmaceuticals (NASDAQ:ORIC), reducing the price target to $14 from the previous $15 while maintaining a Buy rating for the stock. The adjustment follows the company's first quarter update for 2024, which provided insights into upcoming clinical developments.
ORIC Pharmaceuticals is set to begin combination trials for its drug candidate, ORIC-944, a PRC2 inhibitor, with AR inhibitors and plans to share a Phase 1b program update in mid-2024.
The company previously released data in January 2024 regarding the monotherapy application of ORIC-944 in metastatic prostate cancer, which indicated a clean safety profile, a 20-hour half-life, and strong target engagement. Citi noted the significance of these findings, hinting at the potential differentiation of ORIC-944 in the treatment landscape.
Additionally, Pfizer (NYSE:PFE)'s anticipated Phase 1 update in 2024 for its PRC2/EZH2 inhibitor, mevrometostat, in combination with Xtandi, could serve as a de-risking catalyst for ORIC-944. This comparison underscores the competitive environment in which ORIC Pharmaceuticals operates.
Looking further ahead, ORIC Pharmaceuticals has guided that it will release updated Phase 1b data for another of its drug candidates, ORIC-114, in the first half of 2025. ORIC-114 is a brain-penetrant EGFR/HER2 inhibitor, and the forthcoming data will build upon initial results shared in October 2023. These results suggested a competitive position for ORIC-114, which could affect the company's portfolio and prospects.
The updates from ORIC Pharmaceuticals highlight the company's progress in developing its oncology pipeline, focusing on treatments for metastatic prostate cancer and brain-penetrant therapies. The lowered price target by Citi reflects adjustments in expectations while affirming a positive outlook on the stock's potential.
InvestingPro Insights
As ORIC Pharmaceuticals progresses in its clinical developments, a glance at the company's financial health and market performance provides additional context for investors. According to recent real-time data, ORIC has a market capitalization of $631.75 million. Despite a challenging financial performance with an adjusted P/E ratio for the last twelve months of Q4 2023 at -6.27, the company's strategic moves in its oncology pipeline could be a pivot point for future valuation. It's noteworthy that ORIC holds more cash than debt on its balance sheet, an InvestingPro Tip that suggests a solid liquidity position to support ongoing clinical trials and operations.
InvestingPro Data also reveals a substantial 83.37% return over the last year, pointing to a high level of investor confidence in the company's long-term prospects, despite analysts not anticipating profitability this year. Another InvestingPro Tip highlights that while ORIC does not pay a dividend, its liquid assets exceed short-term obligations, indicating the company has the flexibility to manage its short-term liabilities. Investors looking for deeper insights can find additional tips on ORIC Pharmaceuticals by visiting https://www.investing.com/pro/ORIC, where there are PRONEWS24 more tips available to enrich their investment strategy.
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