On Monday, Piper Sandler maintained its Overweight rating and $18.00 stock price target for Tango Therapeutics Inc. (NASDAQ:TNGX). The affirmation follows the release of European Society for Medical Oncology (ESMO) abstracts, which included new data on a competing drug in the same therapeutic class as Tango's pipeline candidate.
The latest data from AMGN's MTA-cooperative PRMT5 inhibitor, AMG 193, showed modest monotherapy activity in certain cancers. The confirmed objective response rate (ORR) stood at approximately 15% for active doses in focus indications such as non-small cell lung cancer (NSCLC), pancreatic ductal adenocarcinoma (PDAC), and biliary tract cancer (BTC). However, within specific histologies, the unconfirmed ORR reached 27% in NSCLC cases, indicating some positive signals in terms of response durability.
Despite the mixed results for AMG 193, Piper Sandler believes these findings continue to demonstrate the monotherapy activity of the MTA-cooperative PRMT5 inhibitor class. According to the firm, this presents a clearer opportunity for Tango Therapeutics to establish its TNG908/462 as a potential best-in-class therapy. Tango Therapeutics anticipates initial data for TNG908/462 by the end of 2024.
The analyst's commentary underscores the significance of the ongoing developments in the MTA-cooperative PRMT5 space. Tango Therapeutics' efforts to capitalize on the window of opportunity with its TNG908/462 could position the company favorably in the market if the forthcoming data align with their expectations.
In other recent news, Tango Therapeutics has been making significant strides in its drug development pipeline. The company recently received a Buy rating from Jefferies, highlighting the potential of Tango's lead assets, '908 and '462, both of which are selective PRMT5-MTA inhibitors targeting MTAP-deleted cancers. These inhibitors are currently in various stages of clinical trials and are expected to address a significant subset of the cancer patient population.
However, Tango Therapeutics also recently announced the cessation of development for its key drug candidate, TNG348, due to observed liver function abnormalities in trial participants. This decision resulted in a revised financial outlook from H.C. Wainwright, who reduced their price target for Tango Therapeutics while maintaining a Buy rating.
Despite this setback, the company's cash runway is now projected to last into 2027, an extension 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.
These are recent developments that reflect Tango Therapeutics' commitment to advancing its portfolio and ensuring its clinical programs stay on track. Jefferies anticipates a significant data update for both '908 and '462 programs in the second half of 2024, which is expected to be a pivotal moment for the company's progress and investor confidence.
InvestingPro Insights
As Tango Therapeutics (NASDAQ:TNGX) aims to establish TNG908/462 as a potential best-in-class therapy, it's essential to consider the company's financial health and market performance. According to InvestingPro, Tango Therapeutics holds more cash than debt on its balance sheet, which is a positive sign for the company's financial stability. This could provide Tango with the necessary resources to continue its research and development efforts for TNG908/462. However, it's noteworthy that analysts have revised their earnings projections downwards for the upcoming period, indicating potential concerns about the company's short-term profitability.
From a market perspective, Tango's stock has experienced significant volatility, evidenced by a substantial hit over the last week, yet it has shown a strong return over the last three months. This could reflect investor sentiment about the company's long-term prospects versus short-term challenges. Tango's market cap stands at 1170M USD, and while the stock is trading at a high revenue valuation multiple, the company's robust revenue growth of 26.16% over the last twelve months suggests potential for future expansion.
Investors considering Tango Therapeutics should be aware that the company has not been profitable over the last twelve months and does not pay a dividend to shareholders. For those seeking more in-depth analysis, there are additional InvestingPro Tips available that can provide further guidance on Tango's financial and market performance.
For more detailed information and tips, readers can visit the InvestingPro platform, which includes a total of 13 InvestingPro Tips for Tango Therapeutics.
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