Canaccord’s healthcare analyst John Newman weighed in with a few insights on Agios Pharmaceuticals Inc (NASDAQ:AGIO), as the company’s AG-120 solid tumor data will be presented at the annual American Association for Cancer Research (AACR) in November.
Newman wrote, “We have a favorable opinion on the efficacy of AG-120 in IDH1+ AML, but do not expect activity within solid tumors, where data is expected at AACR in early Nov. The AG-120 study is open-label, meaning Agios can actively examine the data, and has been running for over 12 months with no data release, suggesting the results are negative, in our view.”
Furthermore, “Data in Pyruvate Kinase Deficiency (PKD) patients could surface by YE15, but must include hemoglobin data in order for the true potential of AG-348 to be determined. We look for an update on data timing at the analyst day. Importantly, the Phase 2 study is being conducted in transfusion-independent PKD patients, which may make hemoglobin changes easier to measure, but only assuming that levels are low enough at baseline to see a meaningful change. We wonder why patients on transfusions are excluded from Phase 2, since they are the most severe.”
The analyst concluded, “While the broad negative mood for the sector has lowered AGIO’s share price well below our price target, we remain on the sidelines ahead of expected mixed catalysts. We adjust our 2016 EPS estimate to reflect the removal of all solid tumor revenues from AG-120 and AG-221.”
Newman reiterated a Hold rating on Agios shares, with a price target of $93, which implies an upside of 22% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of -5.9% and a 35.1% success rate. Newman has a -10.1% average return when recommending AGIO, and is ranked #3625 out of 3773 analysts.
Out of the 8 analysts polled by TipRanks, 6 rate Agios Pharmaceuticals stock a Hold, while 2 rate the stock a Buy. With a return potential of 47%, the stock’s consensus target price stands at $111.80.