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Tyra Biosciences stock target lifted, retains buy on clinical trial data

EditorNatashya Angelica
Published 10/28/2024, 08:57 AM
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On Monday, H.C. Wainwright increased the stock price target for Tyra Biosciences (NASDAQ:TYRA) to $32 from $30 while maintaining a Buy rating on the stock.

The decision came after Tyra Biosciences reported initial clinical data from its SURF-301 Phase 1/2 trial of TYRA-300 in metastatic urothelial carcinoma (mUC). The trial demonstrated a 54.5% confirmed partial response (PR) rate among 11 patients, with 100% of those dosed at or above 90mg showing tumor regression.

The analyst noted the significance of the data, highlighting the therapeutic dose level's effectiveness and a favorable safety profile. Compared to Johnson & Johnson's Balversa, TYRA-300 exhibited fewer FGFR1- and FGFR2-specific toxicities.

Moreover, at doses less than or equal to 60mg, there were no discontinuations or dose reductions, and adverse events were generally mild, with only one case of Grade 1-2 alanine aminotransferase liver enzyme elevation reported.

The next steps for Tyra Biosciences include further dose optimization in mUC ahead of a larger Phase 2 study, submitting an Investigational New Drug (IND) application to enter Phase 2 in non-muscle invasive bladder cancer (NMIBC), and initiating a Phase 2 study in achondroplasia (ACH).

The analyst's increased confidence in the drug's prospects led to a higher probability of approval in mUC, now sitting at 45% compared to the previous estimate of 35%.

The raised price target reflects the positive outlook on Tyra Biosciences' development pipeline and its potential to address unmet medical needs in cancer treatment. The Buy rating reiteration underscores the firm's belief in the company's value and the promising nature of its clinical research findings.

In other recent news, Tyra Biosciences has reported encouraging preliminary results from its Triple abstract, with a 55% objective response rate for TYRA-300, surpassing the expected rate of 36%. TD Cowen has reaffirmed its Buy rating on the company's shares, highlighting the potential for long-term efficacy.

The company has also entered into an agreement with Boxer Capital, LLC and RA Capital Healthcare Fund, L.P. to exchange existing shares for warrants. Upgrades from BofA Securities, Piper Sandler, H.C. Wainwright, and Oppenheimer have also been received, with price targets ranging from $30 to $33.

Tyra Biosciences' TYRA-300, a potential treatment for urothelial carcinoma and other solid tumors, is expected to advance to Phase 2 clinical study for achondroplasia and non-muscle invasive bladder cancer by the end of 2024 and the first half of 2025, respectively. The company's revenue is projected to grow to approximately $2.5 billion by 2035, according to Piper Sandler's estimates.

In addition to these developments, Tyra Biosciences has made significant appointments, including Doug Warner as its new Chief Medical Officer and the addition of Susan Moran, M.D., M.S.C.E., and S. Michael Rothenberg, M.D., Ph.D., to its board as independent directors. These recent developments suggest a positive progression in the company's development pipeline.

InvestingPro Insights

Tyra Biosciences' recent clinical data success is reflected in its market performance, with InvestingPro data showing a remarkable 98.82% price total return over the past year. This aligns with the positive outlook from H.C. Wainwright's increased price target.

Despite the stock's recent 22.7% drop in the past week, possibly due to profit-taking, the company's long-term potential remains strong. An InvestingPro Tip notes that 4 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Tyra's pipeline.

The company's financial health appears solid, with another InvestingPro Tip highlighting that Tyra holds more cash than debt on its balance sheet. This strong liquidity position could be crucial for funding ongoing clinical trials and potential commercialization efforts.

For investors seeking a deeper understanding of Tyra Biosciences' financial landscape, InvestingPro offers 7 additional tips, providing a comprehensive view of the company's potential and risks.

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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