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Nurix Therapeutics shares target raised by RBC Capital on clinical data outlook

EditorEmilio Ghigini
Published 07/12/2024, 06:48 AM
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On Friday, RBC Capital adjusted its price target for Nurix Therapeutics Inc. (NASDAQ:NRIX) shares, a biopharmaceutical company, increasing it to $27.00 from the previous $26.00. The firm retained an Outperform rating on the stock.

This revision follows Nurix's second-quarter 2024 report and discussions with management, which highlighted upcoming catalysts for the second half of 2024. These include additional clinical data for NX-5948, the company's investigational drug for chronic lymphocytic leukemia (CLL) and non-Hodgkin lymphoma (NHL).

The RBC analyst anticipates that further insights into NX-5948's efficacy and durability, particularly at higher doses, will be pivotal for determining the dose expansion and for initiating a pivotal trial for CLL in 2025.

The report also noted the potential for NX-5948's autoimmune program and other inflammation and immunology candidates, such as IRAK4 and STAT6, to contribute additional value to the company's shares.

The analyst's positive outlook is based on the expected clinical advancements and the strategic development of Nurix's portfolio. The company's progress, particularly with NX-5948, could be showcased at upcoming scientific meetings like the American Society of Hematology (ASH) conference, where Nurix may present additional data.

The price target adjustment reflects a fine-tuning of RBC Capital's financial model for Nurix in light of the company's quarterly results. The Outperform, Speculative Risk rating suggests confidence in the company's potential for growth, balanced by an acknowledgment of the inherent uncertainties in drug development.

In other recent news, Nurix Therapeutics has seen a surge of positive analyst attention following promising results from its NX-5948 Phase Ia trial. H.C. Wainwright raised its 12-month price target on Nurix shares to $26, maintaining a Buy rating, while Piper Sandler and RBC Capital reaffirmed their Overweight and Outperform ratings, respectively.

The upward revisions follow Nurix's presentation of encouraging clinical data at the European Hematology Association annual meeting, showing a 69.2% objective response rate in chronic lymphocytic leukemia patients treated with NX-5948.

Nurix's NX-5948, a BTK degrader, has shown significant promise in treating relapsed or refractory B-cell malignancies, with many patients seeing a deepening of their response with additional doses. The company plans to move NX-5948 into pivotal trials in 2025.

Additionally, Nurix has announced key leadership appointments, including Paula G. O’Connor, M.D., as Chief Medical Officer, and Pasit Phiasivongsa, Ph.D., as Chief Technical Officer. Julia P. Gregory was elected the new board chair, succeeding Dr. David L. Lacey, who continues to serve as a board member.

These are the recent developments in Nurix Therapeutics, a company that continues to make strides in the biopharmaceutical industry with its targeted protein modulation drugs for cancer and inflammatory diseases.

InvestingPro Insights

As Nurix Therapeutics Inc. (NASDAQ:NRIX) strides forward with its clinical programs, the company's financial health and market performance offer additional layers of insight. With a robust market capitalization of $1.42 billion, Nurix holds a promising position in the biopharmaceutical industry. Notably, the company has experienced a striking 94.02% revenue growth over the last twelve months as of Q1 2024, underscoring its rapid progress. Moreover, Nurix's stock has demonstrated a strong return, with an impressive 120.74% price total return over the past year, aligning with RBC Capital's optimistic outlook.

InvestingPro Tips highlight that Nurix maintains a healthy liquidity position, holding more cash than debt, which is a reassuring sign for investors considering the speculative nature of biopharmaceutical investments. Additionally, the company's liquid assets surpass its short-term obligations, providing a cushion for operational flexibility. Investors seeking more detailed analyses, including over 15 additional InvestingPro Tips for Nurix, can explore further with a subscription. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a comprehensive view of the potential that lies ahead for Nurix.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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