Turning Point Therapeutics Inc. (TPTX:NASDAQ) has several potential stock moving events expected to occur this year, reported Wedbush analyst David Nierengarten in a March 1 research note.
However, given those catalysts and the current status of its handful of clinical programs, Turning Point is "significantly undervalued at its current levels," the analyst highlighted. Right now, the estimated value of just one of the biopharma's oncology drug candidates for one indication, $29 per share, nearly supports the current $31.66 share price alone, he wrote. Further, in comparison, Wedbush's per share target price on the company is $101.
"With additional upside available across additional indication and development programs, particularly in those with anticipated clinical updates, we remain buyers of Turning Point," Nierengarten added.
The analyst presented the catalysts for Turning Point expected in 2022 related to its clinical programs.
Regarding repotrectinib, an orally administered tyrosine kinase inhibitor (TKI), in Q2/22 the company expects to share with Blinded Independent Central Review topline data from cohort 4 of Turning Point's multicohort Phase 2 study. Cohort 4 consists of patients with ROS1-positive advanced non-small cell lung cancer (NSCLC) treated with one previous TKI without chemotherapy. Also during next quarter, the company expects to discuss these same results with the U.S. Food and Drug Administration (FDA) at a pre-new drug application (NDA) meeting.
The biopharma is evaluating repotrectinib in TKI-naive and TKI-pretreated patients with ROS1-positive advanced non-small cell lung cancer (NSCLC) and NTRK-positive advanced solid tumors in its TRIDENT-1 clinical trial. Wedbush values Turning Point's repotrectinib in ROS1-positive NSCLC alone at $29 per share, Nierengarten pointed out.
As for repotrectinib in NTRK-positive advanced solid tumors, also during Q2/22, Turning Point expects to announce the date of its pending pre-NDA meeting with the FDA.
Two trials of another of Turning Point's drug candidates, elzovantinib, a MET/SRC/CSF1R inhibitor, in solid tumors are slated to commence this year. In about mid-2022, the company plans to launch the Phase 1b/2 SHIELD-2 study of combination therapy elzovantinib plus aumolertinib. Subsequently, after receiving feedback on elzovantinib from the FDA, Turning Point intends to start the Phase 2 portion of SHIELD-1, testing the inhibitor as a monotherapy.
Also in H2/22, the company plans to nominate two candidates targeting aberrant GTPase signaling, as part of its discovery program.
Later in 2022 or in early 2023, data are expected from Turning Point's Phase 1/2 FORGE-1 clinical trial, evaluating its ALK inhibitor drug candidate TPX-0131 in patients with ALK-positive NSCLC.
In terms of finances, Nierengarten relayed that at Dec. 31, 2021, the biopharma had $982 million in cash, cash equivalents, and marketable securities, which it expects will fund its operations into H2/24.
Wedbush has an Outperform rating on Turning Point Therapeutics.
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Disclosures and Disclaimers, Wedbush Securities, Turning Point Therapeutics Inc., March 1, 2022
Analyst Certification: We, David Nierengarten and Dennis Pak, certify that the views expressed in this report accurately reflect our personal opinions and that we have not and will not, directly or indirectly, receive compensation or other payments in connection with our specific recommendations or views contained in this report.
The analysts responsible for preparing research reports do not receive compensation based on specific investment banking activity. The analysts receive compensation that is based upon various factors including WS' total revenues, a portion of which are generated by WS' investment banking activities.
Company Specific Disclosures:
1. WS makes a market in the securities of Turning Point Therapeutics, Inc..
2. WS co-managed a public offering of securities for Turning Point Therapeutics, Inc. within the last 12 months.
3. WS has received compensation for investment banking services from Turning Point Therapeutics, Inc. within the last 12 months.
4. WS provided Turning Point Therapeutics, Inc. with investment banking services within the last 12 months.
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