On Friday, Engene Holdings Inc. (NASDAQ: ENGN) maintained its Outperform rating and $30.00 price target, as confirmed by Oppenheimer. The firm's stance comes in the wake of the recent data release from the LEGEND trial, focusing on EG-70, a treatment for high-risk BCG-unresponsive NMIBC (non-muscle invasive bladder cancer). The trial reported complete response (CR) rates over various timeframes, with 71% at any time, 67% after three months, and 47% at six months.
Oppenheimer addressed the market's reaction to the six-month CR rate, which had led to a decline in Engene's stock price yesterday. The firm suggests that the market's direct comparison of this data to other late-stage or recently approved drugs for the same indication might overlook several key considerations. These include the preference of urologists for therapies that integrate seamlessly into their practices, the relative indifference to minor differences in CR rates, and the likelihood of patients seeking all available treatments before resorting to bladder removal.
The firm also highlighted the significance of a protocol amendment announced by Engene, which permits reinduction treatment. This amendment is expected to support the 12-month CR rates, which serve as the primary endpoint for the LEGEND trial. Oppenheimer believes that this development, along with the current stock valuation of Engene trading near cash levels, presents a buying opportunity for investors.
The analyst's comments shed light on the firm's interpretation of the LEGEND trial results and their implications for Engene's future. The firm's reiteration of the Outperform rating and price target indicates confidence in the company's prospects, despite the market's initial reaction to the six-month CR rate data. Engene's progress in the LEGEND trial and the potential impact of the protocol amendment on long-term outcomes will continue to be areas of focus for investors and industry observers.
In other recent news, Engene Holdings Inc. has seen noteworthy developments. The company reported preliminary results from its LEGEND study for a bladder cancer treatment, detalimogene, prompting Leerink Partners to adjust its price target for Engene to $17 while maintaining an 'Outperform' rating. Engene also plans to make changes to the LEGEND protocol and start enrolling additional cohorts in late 2024. Despite mixed reactions to the initial data, Morgan Stanley maintained an 'Overweight' rating and a $40 price target for Engene, citing potential for the therapy.
Engene's EG-70, another therapy for bladder cancer, also received attention, with Oppenheimer maintaining an 'Outperform' rating and anticipating preliminary results soon. The company also announced leadership changes, including the appointment of Ron Cooper as CEO and the promotion of Dr. Raj Pruthi to CMO. Engene's financial position was noted as robust following a $200 million private investment, with projected sales reaching approximately $530 million by 2031 after an expected product launch in 2027.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.