On Monday, Piper Sandler maintained its Overweight rating on Elevation Oncology (NASDAQ:ELEV) stock with a steadfast $10.00 price target.
The firm's position follows a recent presentation at the American Society of Clinical Oncology (ASCO) meeting, where updated data from a Phase 1 trial of AstraZeneca (NASDAQ:AZN)'s AZD0901 in gastrointestinal (GI) and gastroesophageal junction (GEJ) cancers was shared.
The trial, which initially enrolled 113 patients, assessed the efficacy of the drug in participants who tested positive for CLDN18.2 expression.
The updated ASCO data showed an increase in the overall response rate (ORR) for the 2.2 mg/kg dose cohort to 48%, up from the previously reported 42% in November 2023. The 2.6 mg/kg and 3.0 mg/kg dose cohorts' ORR remained consistent with the November update at 24% and 38%, respectively.
Additionally, the updated median progression-free survival (mPFS) for the low dose cohort remained similar to the November figures, reported at 4.8 months.
Notably, the median overall survival (mOS) for the same group was newly disclosed at 11.8 months, whereas it was previously unreached in the November data.
The analysis of patient baseline characteristics revealed no apparent correlation between the dosage received and the outcomes.
The low dose cohort included a slightly higher percentage of patients with an Eastern Cooperative Oncology Group (ECOG) performance status of 1 compared to the mid and high dose cohorts, with a median of two prior lines of therapy across all cohorts.
Safety profiles across the dosages were consistent, with the top four adverse events (AEs) being anemia, vomiting, hypoalbuminemia, and weight decrease, showing comparable percentages across the low, mid, and high dose groups. This suggests a stable safety profile for AZD0901 across different dosages in the treatment of GI/GEJ cancers.
InvestingPro Insights
As Piper Sandler maintains its positive outlook on Elevation Oncology (NASDAQ:ELEV), investors may also consider some key financial metrics and market performance data from InvestingPro. The company's market capitalization stands at a modest $219.65 million, reflecting its position in the market. Despite the challenges, ELEV's balance sheet shows resilience, holding more cash than debt, which could provide some flexibility in funding ongoing trials and operations. Moreover, the company's liquid assets surpass short-term obligations, indicating a degree of financial stability in the near term.
However, it's important to be aware of the hurdles ahead. InvestingPro Tips indicate that Elevation Oncology has not been profitable over the last twelve months and analysts do not expect it to turn a profit this year. Additionally, the company's gross profit margins are weak, and it does not pay a dividend, which might be a consideration for income-focused investors. On a more volatile note, the stock price has experienced significant fluctuations, with a large price uptick of 688.24% over the last six months, but also a 19.76% decline in the past three months.
For those considering an investment in Elevation Oncology, utilizing InvestingPro could provide additional insights. There are more tips available on the platform, and by using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These resources may help investors better understand the potential risks and rewards associated with ELEV's stock.
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