H.C. Wainwright has updated its outlook on Instil Bio Inc (NASDAQ: TIL), raising the 12-month price target to $40.00 from the previous $25.00.
The firm maintained a Buy rating on the stock. This adjustment comes in response to recent developments from a competitor in the cancer treatment space.
Early this week, Summit Therapeutics (NASDAQ:SMMT) reported comprehensive results from its Phase 3 study of ivonescimab in treating front-line non-small cell lung cancer (NSCLC). Instil Bio's SYN-2510, also known as IMM2510, is currently in Phase 1b/2 development in China and has shown promising results. The Phase 1 trials in China revealed partial responses in patients with solid tumors that were refractory to anti-PD-1 therapy.
Preclinical studies of SYN-2510 demonstrated that it had stronger synergistic antitumor activities compared to the combination of a VEGF blocker and a PD-L1 antibody. These findings are significant as they suggest potential for Instil Bio's treatment approach.
Following the competitor's updates, H.C. Wainwright has updated its model to reflect the associated risk mitigation for Instil Bio's approach.
The firm has reduced the discount rate to 13% from the previous 14%. Despite these changes, the peak penetration rates and ramp to peak sales forecasts for NSCLC remain unchanged.
The analyst from H.C. Wainwright reiterated the Buy rating and emphasized the revised price target, stating, "We are leaving our peak penetration rates and ramp to peak sales forecasts in NSCLC unchanged. Accordingly, we reiterate our Buy rating and raise our 12-month price target to $40 from the prior $25 per share."
In other recent news, Instil Bio reported a positive reception of Akeso/Summit's ivonescimab trial outcomes, which Baird believes could benefit Instil Bio's SYN-2510, a similar class of drug. This optimism has led Baird to maintain its Outperform rating for Instil Bio.
Alongside this, Instil Bio has announced a major restructuring plan to close its UK operations, expecting costs up to $5.5 million. The company also halted the clinical development of its ITIL-306 program, prompting Jefferies to downgrade its stock rating from Buy to Hold.
In a strategic move, Instil Bio has entered into an exclusive license agreement with ImmuneOnco Biopharmaceuticals to develop and commercialize antibodies targeting PD-L1 and VEGF, a deal potentially worth up to $2.1 billion for ImmuneOnco based on future milestones. The company has also secured a 15-year lease with AstraZeneca (NASDAQ:AZN) Pharmaceuticals for its facility in Tarzana, California.
In terms of governance, R. Kent McGaughy, Jr. and Dr. Gwendolyn Binder were reelected to the company's board of directors, and Deloitte & Touche LLP was ratified as its independent registered public accounting firm for the fiscal year ending December 31, 2024.
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