Piper Sandler has reaffirmed its Overweight rating and $18.00 price target for Tango Therapeutics Inc. (NASDAQ: TNGX), following recent data presentations.
Tango Therapeutics, a biotechnology company, remains in focus after updated Phase I findings for a competitor's drug were presented at the European Society for Medical Oncology (ESMO).
The data related to AMGN's PRMT5 inhibitor, AMG 193, showed limited new insights beyond what was previously disclosed, with only about two additional months of follow-up.
Despite the overall efficacy appearing modest, with tumor-specific confirmed objective response rates (ORRs) below 20%, the durability of the response was noted to be good, with a median duration of response (mDOR) of 8.3 months.
The analysis also highlighted a potential disconnect between pharmacodynamic markers used to assess PRMT5 inhibition, such as tumor or serum SDMA reduction, and the clinical responses observed. This observation suggests that the measures may not directly correlate with patient outcomes.
Nevertheless, Piper Sandler expressed continued optimism for Tango Therapeutics' own PRMT5 inhibitors, TNG462 and TNG908.
The firm's stance is bolstered by preclinical data and commentary on early clinical experiences, which suggest that these programs may demonstrate more compelling early clinical profiles. Initial data from Tango Therapeutics' trials are anticipated by the end of 2024.
In other recent news, Tango Therapeutics has seen significant developments in its drug pipeline. H.C. Wainwright maintained its Buy rating on the company's shares, with a steady price target of $13.00, following the release of abstracts from the European Society for Medical Oncology.
The data showed a confirmed objective response rate for several cancer types, potentially impacting the evaluation of Tango Therapeutics' prospects. However, the company recently halted development of its key drug candidate, TNG348, due to observed liver function abnormalities in trial participants.
Piper Sandler maintained its Overweight rating and $18.00 stock price target for Tango Therapeutics, emphasizing the potential of the company's TNG908/462 therapy. The firm's stance was informed by recent data from AMGN's MTA-cooperative PRMT5 inhibitor, AMG 193, which showed modest monotherapy activity in certain cancers, suggesting opportunities for Tango Therapeutics.
Jefferies issued a Buy rating and a price target of $19.00, focusing on the potential of Tango's lead assets, '908 and '462. The firm anticipates a significant data update for both programs in the second half of 2024, which is expected to be a pivotal moment for the company's progress and investor confidence.
InvestingPro Insights
Amidst the developing landscape of biotechnology and Tango Therapeutics' ongoing clinical trials, real-time data from InvestingPro provides a current snapshot of the company's financial health and market performance. Tango Therapeutics holds a market capitalization of approximately $1.03 billion, which reflects investor valuation of the company's potential despite its current stage of development. Notably, the company's cash position is strong, as it holds more cash than debt, a positive sign for its financial stability and ability to fund ongoing research and development. This aligns with one of the InvestingPro Tips that highlights the company's liquidity, indicating that Tango's liquid assets exceed its short-term obligations.
However, Tango Therapeutics is not without its challenges. The company's gross profit margin stands at -218.07%, underscoring the costs associated with its research-intensive operations. Additionally, the company has not been profitable over the last twelve months, and analysts do not anticipate it will be profitable this year. This is further reflected in a negative P/E ratio, which is currently at -8.52. Despite these figures, Tango Therapeutics has experienced a significant return over the last week, with a 15.51% price total return, suggesting investor confidence may be on the rise following recent developments.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which provide further insights into Tango Therapeutics' financials and market performance. These tips can be accessed through the InvestingPro platform for those looking to make more informed investment decisions.
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