On Friday, Truist Securities began coverage on shares of Y-mAbs Therapeutics (NASDAQ:YMAB), setting a Buy rating with a price target of $21.00. The company, which is engaged in the development of cancer drugs, has garnered attention for its revenue generation from an approved antibody-based drug used to treat brain cancer and potentially other tumor types.
Y-mAbs Therapeutics' current stock price is believed to reflect peak sales of around $300 million for this drug. Truist Securities suggests that the success of the antibody-based drug could also help fund the development of Y-mAbs' radioimmunotherapy platform. This platform is still in the early stages, with significant data expected to emerge in late 2024 or 2025.
The firm sees potential in the radioimmunotherapy platform, which could attract interest from larger pharmaceutical companies looking to expand their pipelines or venture into the radiopharmaceutical space. The analyst from Truist Securities highlighted the platform as an aspect of Y-mAbs that warrants attention from long-term investors.
The initiation of coverage by Truist Securities with a positive outlook underscores the firm’s confidence in Y-mAbs Therapeutics' prospects. The $21.00 price target suggests a promising future for the company's stock, contingent on the progression and success of its drug development initiatives.
In other recent news, Y-mAbs Therapeutics has reported mixed Q1 results, with an 11% increase in U.S. net sales of their product DANYELZA, totaling $18.6 million. However, the company's global net product sales saw a 4% decline, falling to $19.4 million due to reduced international demand. Despite this, Y-mAbs remains confident in its full-year DANYELZA net product sales guidance of $95 million to $100 million.
In a recent development, Y-mAbs has appointed Dr. Norman LaFrance as Chief Development Officer, a move expected to advance its work in cancer treatment technologies. The company also presented preclinical data on their novel cancer treatment technology, GD2-SADA, at the Society of Nuclear Medicine & Molecular Imaging (SNMMI) Annual Meeting.
The GD2-SADA technology is part of Y-mAbs' broader Pretargeted Radioimmunotherapy Platform (PRIT), which is currently under Phase 1 clinical development. The company is also progressing with the development of its SADA PRIT radio-immune therapy platform, aiming to improve cancer treatment options.
These are among the recent developments for Y-mAbs Therapeutics.
InvestingPro Insights
As Y-mAbs Therapeutics (NASDAQ:YMAB) continues to make strides in the development of its cancer treatments, InvestingPro data highlights several financial metrics and market performance indicators that investors may find valuable. With a market capitalization of $541.07 million and a striking gross profit margin of 86.41% for the last twelve months as of Q1 2024, the company's ability to generate revenue from its products is evident. Despite analysts' expectations of the company not turning a profit this year, Y-mAbs has shown impressive revenue growth of 12.62% over the same period.
InvestingPro Tips suggest that Y-mAbs holds more cash than debt, which is a strong indicator of financial health, and its gross profit margins are impressive. Additionally, the company's liquid assets exceed its short-term obligations, providing a cushion for operational flexibility. However, the company is trading at a high Price/Book multiple of 5.45, which could be a point of consideration for value-focused investors. Over the last six months, the stock has seen a large price uptick, with a 66.85% return, and year-to-date, the return is an even more significant 80.79%.
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