- Oops!Something went wrong.Please try again later.
Not many sectors offer the potential for big time gains like biotech. Especially when you’re looking at smaller clinical-stage names. Case in point: Veru (VERU) stock has been on one almighty run since announcing an expansion of its oncology drug pipeline last Wednesday; shares have surged 207% in the interim.
Specifically, the company has exclusively licensed worldwide rights to enobosarm - an androgen receptor targeting agent for endocrine resistant metastatic breast cancer.
The latest leg up took place on Monday, after the the company reported positive results from the Phase 2 study of enobosarm. The data presented at the 2020 San Antonio Breast Cancer Symposium showed that at the 6-month primary endpoint, enobosarm demonstrated a significant clinical benefit rate of 32% and 29% in the 9mg and 18mg daily AR+ (androgen receptor) groups, respectively.
Patients also experienced meaningful improvements in quality-of-life metrics such as anxiety/depression, pain discomfort and mobility. Overall, enobosarm was well tolerated with generally only mild to moderate adverse events reported.
The new addition, according Cantor analyst Brandon Folkes, further bolsters the bull case.
“VERU has built and acquired a pipeline of compelling oncology assets, in our opinion, and we now believe the company has multiple shots in goal within oncology that it deserves to trade closer to oncology peers, than traditional spec pharma,” the analyst said. “As VERU has built itself into an oncology company, we think the market has continued to undervalue the company. We believe there remains upside to the value we ascribe to the oncology assets in our new price target which could be realized by data readouts over the next 12 to 18 months.”
The new price target is a meaningful upgrade on the prior one. The figure moves from $6 to $15 and represents potential upside of 50% from current levels. Accordingly, Folkes’ Overweight (i.e. Buy) rating stays intact. (To watch Folkes’ track record, click here)
Other Street analysts unanimously agree with Folkes’ assessment. Veru has a Strong Buy consensus rating, based on Buys only – 4, as it happens. According to the $15.75 average price target, there’s room for an additional 57% of upside over the next 12 months. (See Veru stock analysis on TipRanks)
To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.