H.C. Wainwright has maintained a Buy rating on Nurix (NASDAQ: NRIX) and increased the price target to $30.00 from the previous $26.00.
The adjustment follows Nurix's presentation of clinical data from its Phase 1a/1b trial of NX-5948, a treatment for patients with relapsed/refractory Waldenstrom’s macroglobulinemia (WM).
The data, presented at the 12th International Workshop on Waldenstrom’s Macroglobulinemia, showed that NX-5948 achieved an objective response rate (ORR) of 77.8% in patients. This rate was based on seven out of nine response-evaluable patients having a positive reaction to the treatment. Notably, the responses were consistent regardless of mutations in MYD88 and CXCR4 genes.
NX-5948 is described as an orally bioavailable, brain penetrant degrader of Burton’s tyrosine kinase (BTK). The clinical trial included 13 participants who had previously undergone various treatments including BTK inhibitors and chemo/chemo-immunotherapy. Of these, eight patients had MYD88 mutations and two had CXCR4 mutations.
The analyst highlighted the significance of these results by comparing them to similar treatments. Eli Lilly (NYSE:LLY) & Co.'s Jaypirca (pirtobrutinib) showed a major response rate of 64% in a Phase 1/2 study, while BeiGene (NASDAQ:BGNE)'s BGB-16673 displayed an ORR of 56% in patients with WM and other lymphomas, according to data presented at ASH 2023.
The positive clinical outcomes of NX-5948 have led to renewed confidence in Nurix's stock, as reflected in the raised price target. The company's progress in developing a potentially effective treatment for WM is underscored by the strong response rates observed in the trial.
In other recent news, Nurix Therapeutics has experienced significant developments. The biopharmaceutical company has recently appointed Anil Kapur to its board of directors, a move expected to bring strategic insights as the company prepares its drug candidate NX-5948 for pivotal clinical trials in 2025. Kapur, who has over 25 years of experience in the pharmaceutical sector, has a successful track record in drug launches in the hematology and oncology space.
In addition to the board appointment, Nurix has seen considerable attention from analysts. Wells Fargo (NYSE:WFC) maintained an Overweight rating on the company, emphasizing the potential of NX-5948 for treating chronic lymphocytic leukemia (CLL) and its potential in non-Hodgkin lymphoma (NHL) and inflammation and immunology (I&I) indications. Similarly, Stifel increased its price target for Nurix shares, maintaining a Buy rating, due to positive trial outlooks for NX-5948.
Piper Sandler reiterated an Overweight rating on Nurix, highlighting the company's third-quarter 2024 earnings and updates on its drug pipeline. Jefferies initiated coverage on Nurix with a Buy rating, citing the company's strong pharmaceutical partnerships and promising Phase 1b trials for '5948, a BTK degrader for cancer and immune and inflammatory diseases. Lastly, Truist Securities maintained a Buy rating on Nurix shares, focusing on the company's progress in protein degradation and its leading drug NX-5948.
InvestingPro Insights
Nurix's recent clinical data presentation and the subsequent positive analyst reaction are reflected in the company's strong market performance. According to InvestingPro data, Nurix has seen a remarkable 424.06% price total return over the past year, with an 84.33% increase in the last six months alone. This aligns with the InvestingPro Tip that the stock has shown a "High return over the last year" and is currently "Trading near 52-week high."
Despite the promising clinical results, it's important to note that Nurix is not yet profitable. An InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This is consistent with the nature of biotech companies in the development stage, where significant investments in research and clinical trials often precede profitability.
For investors interested in a deeper analysis, InvestingPro offers 13 additional tips for Nurix, providing a more comprehensive view of the company's financial health and market position.
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