On Wednesday, Tango Therapeutics Inc. (NASDAQ: TNGX) received a Buy rating from Jefferies, accompanied by a price target of $19.00. The firm highlighted the potential of Tango's lead assets, '908 and '462, both of which are selective PRMT5-MTA inhibitors targeting MTAP-deleted cancers. These cancers represent approximately 10-15% of all tumors.
The coverage initiation by Jefferies comes as Tango Therapeutics advances its two lead assets through clinical trials. The brain-penetrant '908 is currently in phase I/II trials for glioblastoma multiforme (GBM), while '462, which does not penetrate the brain, is suggested to potentially show better efficacy against other tumor types compared to competitors, based on preclinical potency and selectivity.
Jefferies points to the upcoming data update for both programs in the second half of 2024 as a significant de-risking event for the company. The firm's positive outlook reflects confidence in the therapeutic's performance and the milestone's potential impact on Tango's valuation.
Tango Therapeutics is poised for a critical period as it prepares for the data update on its clinical programs. The company's focus on developing treatments for MTAP-deleted cancers could address a significant subset of the cancer patient population.
The $19.00 price target set by Jefferies indicates their anticipation of Tango's growth potential, with the clinical data update serving as a pivotal moment for the company's progress and investor confidence.
In other recent news, Tango Therapeutics has made significant adjustments in its drug development pipeline.
The company recently announced the cessation of development for its key drug candidate, TNG348, due to observed Grade 3/4 liver function abnormalities in trial participants. This decision has been met with a revised financial outlook from H.C. Wainwright, who reduced their price target for Tango Therapeutics from $16 to $13, while maintaining a Buy rating on the company's stock.
The halted TNG348 trial was exploring the drug's efficacy as a standalone treatment and in combination with Lynparza (olaparib) for patients with BRCA1/2-mutant or other HRD+ cancers. Despite the setback, the drug had shown promising results in early assessments, demonstrating potency, selectivity, and synergistic activity when used with PARP inhibition.
With the discontinuation of TNG348, Tango Therapeutics' cash runway is now projected to last into 2027, extending from the previous estimate of late 2026. This strategic shift away from TNG348 allows the company to explore other therapeutic opportunities, particularly the PRMT5 program.
The company's focus remains on advancing its portfolio, ensuring its clinical programs stay on track.
InvestingPro Insights
As Tango Therapeutics Inc. (NASDAQ: TNGX) navigates through an important phase with its clinical trials, real-time data from InvestingPro provides a snapshot of the company's financial health and market performance. With a market capitalization of $1.05 billion, Tango Therapeutics is trading at a price-to-book ratio of 3.98 as of the last twelve months leading up to Q1 2024. Despite the challenges highlighted by analysts, such as an expected sales decline and weak gross profit margins, the company's stock has exhibited strong returns over the last year, with a 177.18% one-year price total return. Additionally, Tango's liquid assets outstripping short-term obligations is a positive sign of the company's liquidity.
InvestingPro Tips reveal that while Tango holds more cash than debt, indicating a solid balance sheet, the company is not expected to be profitable this year, with both net income and gross profit margins under pressure. Investors should consider these factors alongside the potential upside from the company's innovative cancer therapies. For a deeper analysis and more InvestingPro Tips, including the full list of 11 tips for Tango Therapeutics, visit InvestingPro. To explore these insights further and access additional professional investment tools, readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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