Piper Sandler has reaffirmed its Overweight rating and $15.00 price target for ESSA Pharma (NASDAQ: NASDAQ:EPIX), following the presentation of updated trial data.
The data, from masofaniten's Phase Ib trial in combination with enzalutamide for anti-androgen naive metastatic castration-resistant prostate cancer (mCRPC), showed improved efficacy.
The Prostate-Specific Antigen (PSA) response rate increased to 88%, up from 81%, significantly outperforming historical data for enzalutamide alone, which ranges from 25% to 50%.
The median time to PSA progression has not yet been reached after a median follow-up of 15.2 months, suggesting a potential advantage over enzalutamide's historical median of 7.8 to 11.2 months.
Although the trial cohort is modest in size and single-armed, the results support the belief that masofaniten enhances the effects of enzalutamide. This data bolsters confidence in the ongoing randomized Phase II trial, with top-line results anticipated in mid-2025.
The updated findings presented at the European Society for Medical Oncology (ESMO) conference indicate that masofaniten, when used in conjunction with enzalutamide, may offer a better treatment profile for patients with mCRPC who have not previously received anti-androgen therapy.
The improved PSA90 rate, which is a significant increase from previous results, and the extended median time to PSA progression, which has surpassed the expected timeframe, are key highlights from the data.
In other recent news, ESSA Pharma has continued to make strides in its clinical trials, with both Oppenheimer and Piper Sandler maintaining positive ratings and price targets for the company. New findings from ESSA Pharma's Phase 1/2 study of masofaniten combined with enzalutamide in treating metastatic castration-resistant prostate cancer were presented at the European Society for Medical Oncology conference, revealing increased patient response rates and an unremarkable safety profile for the drug combination. The ongoing Phase 2 dose expansion is actively enrolling patients across multiple sites in the US, Canada, and Australia, with further participation from Europe anticipated.
In a separate development, an Ipsen employee, Dishant Gupta, is set to plead guilty to securities fraud for insider trading based on confidential information regarding the company's acquisition plans. The case revolves around trades involving cancer drug developer Epizyme (NASDAQ:EPZM), from which Gupta profited over $262,000.
Meanwhile, Piper Sandler has reiterated its confidence in ESSA Pharma, citing positive outlooks from the company's clinical trials and the potential for masofaniten to outperform current benchmarks in prostate cancer treatment.
The firm expects top-line data from the Phase 2 masofaniten and enzalutamide combination study to be reported in mid-2025, which could further validate ESSA Pharma's approach to treating metastatic castration-resistant prostate cancer.
InvestingPro Insights
As ESSA Pharma (NASDAQ:EPIX) continues to show promising trial results for its mCRPC treatment, investors may find additional context in the company's financial health and market performance. According to InvestingPro data, ESSA Pharma holds a market capitalization of approximately $303.93 million. Despite the company's lack of profitability over the last twelve months, with an adjusted P/E ratio of -10.98, there has been a significant return over the last year, with a 158.49% increase in price total return. This is a testament to the market's optimism regarding ESSA Pharma's long-term potential.
InvestingPro Tips highlight that ESSA Pharma currently holds more cash than debt on its balance sheet, which could provide financial flexibility in its operations and research development. Moreover, three analysts have revised their earnings upwards for the upcoming period, reflecting a positive outlook on the company's financial future. These insights, coupled with the recent clinical developments, may bolster investor confidence in ESSA Pharma's growth trajectory.
For those looking to delve deeper into ESSA Pharma's prospects, there are additional InvestingPro Tips available that can provide further analysis and guidance (https://www.investing.com/pro/EPIX). Understanding the company's financial nuances alongside its clinical advancements could offer a more comprehensive view for potential investors.
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