Array BioPharma (NASDAQ:ARRY) shares surged 81% yesterday after the firm conveyed promising phase 3 COLUMBUS results for its BRAF-mutant melanoma cancer treating pipeline drug BRAFI encorafenib, an oral small molecule kinase inhibitor with potent and selective inhibitory activity, which in combination with MEKI binimetinib hit a strong progression-free survival (PFS) endpoint.

On back of the biotech firm’s success, Jefferies analyst Eun Yang reiterates a Buy rating on ARRY, while boosting the price target from $7 to $8, which represents a 17% increase from where the shares last closed.

The analyst notes, “Given historical MEKi/BRAFi combo data in BRAFm melanoma, positive Ph3 COLUMBUS data is not a surprise. However, strong PFS benefits with BINI/ENCO combo (vs. prior studies) is a nice surprise (albeit not a head-to-head study), clearly demonstrating adding MEKi to BRAFi augments PFS benefits to BRAFi alone. With BINI under FDA review & BINI/ENCO filings in 2017, ARRY would potentially have two drugs on market for melanoma by early 2018.”

Full Phase 3 Part 1 data could be presented at the Society for Melanoma Research (SMR) in Boston, Massachusetts, at a conference set for November 6th through 9th of this year.

“We look for potential favorable safety profiles vs. other FDA-approved combos with high rates of rash, diarrhea & photosensitivity,” Yang concludes.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, five-star analyst Eun Yang is ranked #360 out of 4,183 analysts. Yang has a 65% success rate and realizes 5.5% in his yearly returns. When recommending ARRY, Yang yields 2.3% in average profits on the stock.

TipRanks analytics indicate ARRY as a Strong Buy. Based on 5 analysts polled in the last 3 months, 100% rate a Buy on ARRY. The consensus price target stands at $8.80, marking a nearly 30% upside from where the stock is currently trading.screen-shot-09-27-16-at-07-04-pm