On Monday, H.C. Wainwright maintained a Buy rating on shares of Tango Therapeutics Inc. (NASDAQ: TNGX), with a price target of $13.00. The firm's stance comes in light of recent data presented by Bristol Myers (NYSE:BMY) Squibb (BMS) regarding their advanced solid tumor treatment, BMS-986504.
The data, revealed during the EORTC-NCI-AACR Symposium, focused on the Phase 1/2 CA240-0007 trial results for BMS-986504, a PRMT5 inhibitor designed for cancers with homozygous MTAP deletions, which are present in approximately 10% of all cancers. The significance of MTAP deletions lies in their role in creating a vulnerability in cancer cells to PRMT5 inhibition.
The trial demonstrated promising results, with 26 out of 124 efficacy-evaluable patients showing a partial response. This equates to an overall response rate (ORR) of 21%. Notably, the response rate was higher in patients with non-small cell lung cancer (NSCLC) and mesothelioma, reaching 31% and 36%, respectively. These responses are also showing signs of deepening over time.
Moreover, the median duration of response (mDOR) was reported to be 10.5 months for NSCLC patients, while it has not yet been reached for those with mesothelioma. These outcomes suggest a potentially significant impact on the treatment of these cancer types, which are known to be challenging to treat.
In other recent news, Tango Therapeutics has seen significant developments in its drug pipeline. The biotech company is preparing for year-end clinical updates for its PRMT5 inhibitors, TNG908 and TNG462. Leerink Partners and Piper Sandler have maintained their positive ratings on the company's stock, expressing optimism for the potential of these inhibitors.
Despite Tango Therapeutics halting the development of TNG348 due to observed liver function abnormalities in trial participants, the company's cash runway is projected to last until 2027, allowing for exploration of other therapeutic opportunities. H.C. Wainwright has also maintained a Buy rating, with a steady price target of $13.00, following the release of abstracts from the European Society for Medical Oncology.
The firm's stance was influenced by recent data from AMGN's 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.
InvestingPro Insights
As Tango Therapeutics (NASDAQ: TNGX) continues to make strides in cancer treatment research, InvestingPro data provides additional context to the company's financial position. Despite the positive outlook from H.C. Wainwright, TNGX's stock has experienced significant pressure, with a 39.18% decline over the past three months. This downturn has brought the stock near its 52-week low, trading at just 45.58% of its 52-week high.
InvestingPro Tips highlight that Tango Therapeutics holds more cash than debt on its balance sheet, which could provide financial flexibility for ongoing research and development efforts. However, the company is quickly burning through cash, a common characteristic of biotech firms in the development stage. This cash burn rate is reflected in the company's negative gross profit margin of -218.07% for the last twelve months as of Q2 2024.
Investors should note that analysts do not anticipate profitability for TNGX this year, aligning with the company's current focus on research and development rather than immediate commercialization. For those considering an investment in Tango Therapeutics, InvestingPro offers 13 additional tips to provide a more comprehensive analysis of the company's prospects.
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