On Friday, H.C. Wainwright maintained a Buy rating and a $75.00 stock price target for CG Oncology (NASDAQ:CGON), following a positive update from the company's Phase 3 BOND-003 study. The study, which focuses on cretostimogene (creto) for treating high-risk non-muscle invasive bladder cancer (NMIBC, Cohort C), has shown promising results.
With a market capitalization of $2.27 billion, CGON has received a "Strong Buy" consensus from analysts, with price targets ranging from $51 to $86. InvestingPro data reveals the company maintains a strong balance sheet with more cash than debt, positioning it well for continued clinical development.
CG Oncology reported a 74.5% overall complete response (CR) rate at any time, based on 110 patients. Additionally, the 12-month landmark CR rate improved to 46%, with a 95% confidence interval (CI) of 36.9–56.1, up from the previously reported 43.3%. The update also revealed a 24-month CR rate with 25 confirmed CRs, showcasing a 41% CR rate based on Kaplan-Meier estimates.
The study highlighted the safety and durability of creto, with 97.3% of patients remaining progression-free to muscle-invasive bladder cancer (MIBC) at 12 months, and 90.0% achieving cystectomy-free survival. These results underscore the treatment's potential for sustained efficacy, which is further supported by the fact that the median duration of response (DoR) has not yet been reached but exceeds 27 months.
According to InvestingPro, analysts anticipate significant sales growth for CGON in the current year, though the company is not expected to be profitable. Get access to 5 additional ProTips and comprehensive financial analysis with an InvestingPro subscription.
H.C. Wainwright emphasized that the sustained DoR and superior safety profile of creto should resonate with both patients and physicians over comparisons of CR rates at specific time points against competitor profiles. The estimated 12-month DoR probability is 63.5%, with a 95% CI of 51.0–73.4, and a 24-month DoR probability of 56.6%, with a 95% CI of 43.3–67.8.
In comparison to other treatments such as pembrolizumab and nadofaragene, which report median DoRs of 16 and 10 months respectively, creto demonstrates a significant advantage. The median follow-up in responders is at least 14.5 months, further solidifying its position in the market.
CG Oncology's stock rating and price target remain unchanged as the company continues to demonstrate the potential of creto in treating NMIBC.
Currently trading at $33.56, CGON maintains a "Fair" overall financial health score of 2.28 according to InvestingPro's comprehensive analysis. For detailed insights into CGON's valuation, growth prospects, and peer comparison, access the full Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, CG Oncology has been the focus of several analyst firms, following the release of clinical data on its lead program, cretostimogene, developed for non-muscle invasive bladder cancer (NMIBC).
UBS initiated coverage on CG Oncology with a Buy rating and a $60.00 price target, emphasizing cretostimogene's potential advantages over competitors, such as superior durability and a clean safety profile. They also projected a peak sales opportunity of $1.9 billion for the drug.
Goldman Sachs (NYSE:GS) reiterated its Buy rating on CG Oncology, maintaining a $52.00 price target, and emphasized the potential of cretostimogene in treating NMIBC. The firm noted cretostimogene's 43% 12-month complete response rate and its potential to improve.
Roth/MKM issued a Buy rating with a $65.00 price target, citing cretostimogene's potential to capture market share due to its tolerability. The final analysis from CG Oncology's BOND-003 trial is expected by the end of 2024, coinciding with the company's plans for a Biologics License Application submission in 2025. These recent developments underscore the ongoing interest in CG Oncology's work in the oncology space.
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