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Stifel maintains Buy on RPTX with $9 target after data presentation

Published 23/10/2024, 19:08
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On Wednesday, Repare Therapeutics' (NASDAQ:RPTX) stock maintained a Buy rating and a $9.00 price target from Stifel, following the presentation of safety data for its drug candidates, lunresertib and camonsertib, at the EORTC-NCI-AACR Symposium. The data suggest that an intermittent dosing schedule may reduce the risk of Grade 3 anemia without compromising the treatment's efficacy.

The study presented at the symposium revealed that a two weeks on, one week off (2/1w) dosing schedule for the combination of lunresertib and camonsertib has been successful in lowering the occurrence of Grade 3 anemia in patients. This schedule has also led to a decrease in the number of patients requiring red blood cell (RBC) transfusions and those experiencing dose interruptions.

The incidence of Grade 3 anemia dropped to 22.6% (12 out of 53 patients) with the implementation of dose optimization. Additionally, the rate of dose interruptions fell to 13.2% from 22.9%, and the necessity for RBC transfusions decreased to 13.2% from 42.9%. These improvements are seen as a positive development in the treatment's safety profile.

A key point of discussion among experts has been the potential impact of intermittent dosing on the overall effectiveness of the treatment. Repare Therapeutics provided high-level data indicating that patients who switched from a continuous dosing schedule to the intermittent 2/1w schedule did not show a significant difference in the reduction of tumor lesions. Progression-free survival (PFS) curves for patients on either dosing schedule also appeared to overlap, suggesting that the intermittent schedule does not negatively affect the drug's efficacy.

More detailed efficacy results are anticipated to be released in the fourth quarter of 2024. The presentation of this data is particularly relevant as it addresses concerns regarding the balance between treatment efficacy and patient safety in the administration of these drug candidates.

In other recent news, Repare Therapeutics has made substantial progress in its cancer trials. The company's Phase 1 MYTHIC clinical trial data indicates that an individualized treatment schedule can effectively manage anemia, a common side effect of cancer therapy. Repare has also initiated a Phase 1 clinical trial for RP-3467, a Polθ ATPase inhibitor designed for cancer treatment.

Additionally, the company has reported promising results for its drug camonsertib, showing potential benefits in treating metastatic tumors with specific mutations. These are recent developments in the company's ongoing efforts in advancing precision oncology treatments.

Analyst firms Piper Sandler, Stifel, and H.C. Wainwright have maintained their positive ratings for Repare Therapeutics following these developments. The U.S. Food and Drug Administration has also granted Fast Track designation to the company's ovarian cancer drug combination, lunresertib and camonsertib.

In a strategic move, Repare Therapeutics has shifted its research and development focus, which is expected to result in significant annual cost savings of around $15.0 million and extend the company's cash runway into the second half of 2026. Finally, the company's board of directors has seen a reshuffle, with Steven H. Stein, M.D., assuming the role of chair of the Science and Technology Committee.

InvestingPro Insights

To complement the article's focus on Repare Therapeutics' (NASDAQ:RPTX) drug candidates and their dosing strategies, InvestingPro data provides additional context on the company's financial health and market performance.

According to InvestingPro data, Repare Therapeutics has a market capitalization of $141.77 million USD, reflecting its current valuation in the biotech sector. The company's revenue for the last twelve months as of Q2 2024 stood at $68.68 million USD. However, it's important to note that the company is currently not profitable, with a negative gross profit of $59.95 million USD over the same period.

Two InvestingPro Tips are particularly relevant to the company's current situation:

1. Repare Therapeutics holds more cash than debt on its balance sheet, which is crucial for biotech companies investing heavily in research and development.

2. Two analysts have revised their earnings upwards for the upcoming period, potentially indicating positive expectations for the company's pipeline progress.

These insights align with the article's focus on the company's drug development efforts and the importance of balancing efficacy with safety in clinical trials. The strong cash position suggests that Repare has the financial resources to continue its research programs, including the development of lunresertib and camonsertib.

Investors interested in a deeper analysis can find 5 additional InvestingPro Tips for Repare Therapeutics, offering a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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