Piper Sandler has maintained its Overweight rating on Gilead Sciences (NASDAQ: NASDAQ:GILD) with a price target of $95.00.
The firm's analysis followed updates from the World Conference on Lung Cancer (WCLC) regarding various TROP2-targeting ADC programs, including those by Gilead Sciences.
Gilead Sciences presented initial data from the EVOKE-02 study at the conference, which focused on Trodelvy in combination with pembrolizumab and carboplatin for first-line non-small cell lung cancer (NSCLC).
The data from Cohorts C and D did not indicate a strong enough response to justify advancing this combination into later-stage trials for a broader first-line NSCLC patient population.
The firm noted that the EVOKE-03 trial remains the primary Phase III study for Trodelvy. This study compares the Trodelvy and pembrolizumab doublet against pembrolizumab alone in first-line NSCLC patients with high levels of PD-L1 expression. The update suggests a narrowed focus for Trodelvy's development in this particular setting.
Additionally, quantitative details were provided on the EVOKE-01 trial in second-line NSCLC, as well as final overall survival data from Daiichi's TROPION-Lung01 study in second-line NSCLC. The updates also included information on the progress of TROP2-targeting ADCs in small-cell lung cancer (SCLC).
The reiteration of the Overweight rating and price target reflects Piper Sandler's ongoing confidence in Gilead Sciences' stock potential, despite the recent trial data outcomes.
In other recent news, Gilead Sciences reported significant developments in its operations. Gilead announced a strategic collaboration with Genesis Therapeutics to accelerate the discovery of new small molecule therapies.
The partnership will leverage Genesis' AI platform, GEMS, and is expected to impact Gilead's 2024 earnings per share by approximately $0.02.
Gilead also released promising results from lung cancer studies on Trodelvy, set to be presented at the upcoming IASLC World Conference on Lung Cancer. However, it is crucial to note that Trodelvy has not yet received approval for treating these forms of lung cancer.
Analysts from RBC Capital, TD Cowen, and BMO Capital Markets have maintained positive outlooks on Gilead's stock, following developments such as the impressive efficacy of Gilead's HIV prevention drug, lenacapavir, and the FDA's accelerated approval for Livdelzi, a treatment for Primary Biliary Cholangitis.
Gilead reported a 6% year-over-year rise in total product sales during its second quarter of 2024, reaching $6.7 billion. This increase was driven by an 8% rise in sales for its HIV treatment, Biktarvy, and a 23% increase for the oncology drug, Trodelvy.
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