On Tuesday, H.C. Wainwright maintained its Buy rating on shares of Tango Therapeutics Inc. (NASDAQ: TNGX), with a consistent price target of $13.00. The firm's stance comes after the release of abstracts from the European Society for Medical Oncology (ESMO), which included updated results for AMG 193, a MTAP-cooperative PRMT5 inhibitor that is relevant to the evaluation of Tango Therapeutics' prospects.
The updated data showed a confirmed objective response rate (ORR) of 18.2% for non-small cell lung cancer (NSCLC) patients, 12.5% for pancreatic ductal adenocarcinoma (PDAC) patients, and 18.2% for biliary tract cancer (BTC) patients at active dose levels.
These figures represent a decrease from the previously reported 28% ORR at doses above 800mg. Despite this decline, the firm suggests the findings could potentially be extrapolated to TNG462, a similar compound in development by Tango Therapeutics.
The analyst noted the greater in vivo efficacy of TNG462 compared to AMG 193 in identical tumor models. This observation plays a part in the firm's anticipation for the upcoming initial results for TNG908 and TNG462, which are expected in the second half of 2024. The firm's reiteration of the Buy rating and price target is predicated on these forthcoming data points.
Tango Therapeutics is actively developing TNG908 and TNG462, with initial dose-escalation results slated for release later in the year. These results will be crucial in informing the firm's future forecasts and investment perspective on the biotechnology company.
H.C. Wainwright's current valuation of Tango Therapeutics remains unchanged, reflecting confidence in the company's pipeline and potential market performance. The $13 price target is based on a 12-month projection, as the market awaits further clinical data that could influence the company's trajectory.
In other recent news, Tango Therapeutics has experienced significant developments in its drug pipeline. The company's TNG908/462, a potential best-in-class therapy, is expected to have initial data by the end of 2024.
Piper Sandler maintained its Overweight rating and $18.00 stock price target for Tango Therapeutics, highlighting the potential of this therapy. On the other hand, Jefferies issued a Buy rating and a price target of $19.00, focusing on the potential of Tango's lead assets, '908 and '462.
Recent data from AMGN's MTA-cooperative PRMT5 inhibitor, AMG 193, showed modest monotherapy activity in certain cancers. Although the results were mixed, Piper Sandler believes these findings demonstrate the monotherapy activity of the MTA-cooperative PRMT5 inhibitor class, suggesting opportunities for Tango Therapeutics.
However, Tango Therapeutics recently ceased development of its key drug candidate, TNG348, due to observed liver function abnormalities in trial participants. This decision led to a revised financial outlook from H.C. Wainwright, who reduced their price target for Tango Therapeutics while maintaining a Buy rating.
Despite this, the company's cash runway is now projected to last into 2027, allowing the company to explore other therapeutic opportunities, particularly the PRMT5 program.
InvestingPro Insights
As Tango Therapeutics (NASDAQ: TNGX) positions itself in the competitive biotechnology landscape, recent market data from InvestingPro offers a snapshot of the company's financial health and stock performance.
With a market capitalization of approximately $981.44 million, the company's valuation reflects investor sentiment toward its potential. Despite a challenging gross profit margin of -218.07% over the last twelve months as of Q2 2024, Tango Therapeutics holds more cash than debt on its balance sheet, which could provide some financial flexibility in advancing its clinical programs.
InvestingPro Tips suggest caution, as 5 analysts have revised their earnings downwards for the upcoming period, and the stock has experienced a significant decline over the last week. Additionally, Tango Therapeutics does not pay a dividend to shareholders, which may influence investment decisions for those seeking income-generating stocks.
On a more positive note, the company's liquid assets exceed short-term obligations, which could be a reassuring factor for investors concerned about the company's ability to meet its immediate financial obligations.
For investors looking to delve deeper into Tango Therapeutics' financials and stock performance, InvestingPro offers a comprehensive set of additional tips, providing a well-rounded perspective on the company's outlook. As the market anticipates the initial results for TNG908 and TNG462 in the second half of 2024, these insights could prove valuable in assessing the company's future prospects.
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