Rate This Article    

Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


This Year Should Be Catalyst Rich for Oncology Pharma Co.
Research Report

Share on Stocktwits

An outperform-rated biopharma, which has a robust year of significant events ahead, is trading now at a significant discount, noted a Wedbush report.

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.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. 
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.


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.
Applicable disclosure information is also available upon request by contacting the Research Department at (212) 833-1375, by email to [email protected] You may also submit a written request to the following: Wedbush Securities, Attn: Research Department, 142 W 57th Street, New York, NY 10019.
OTHER DISCLOSURES: The information herein is based on sources that we consider reliable, but its accuracy is not guaranteed. The information contained herein is not a representation by this corporation, nor is any recommendation made herein based on any privileged information. This information is not intended to be nor should it be relied upon as a complete record or analysis: neither is it an offer nor a solicitation of an offer to sell or buy any security mentioned herein. This firm, Wedbush Securities, its officers, employees, and members of their families, or any one or more of them, and its discretionary and advisory accounts, may have a position in any security discussed herein or in related securities and may make, from time to time, purchases or sales thereof in the open market or otherwise. The information and expressions of opinion contained herein are subject to change without further notice. The herein mentioned securities may be sold to or bought from customers on a principal basis by this firm. Additional information with respect to the information contained herein may be obtained upon request.
Wedbush Securities does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see pages 3–7 of this report for analyst certification and important disclosure information.

Want to read more about Biotechnology / Pharmaceuticals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe