Cantor analyst Mara Goldstein is out today with a bullish note on shares of Ignyta Inc (NASDAQ:RXDX), following positive interim data from the company’s clinical trial for entrectinib in the treatment of ROS1-positive fusion patients with NSCLC. The analyst boosted her price to $23 (from $15), while reiterating an Overweight rating on the stock. (To watch Goldstein’s track record, click here)
Entrectinib is an investigational, CNS-active, potent, and selective small molecule tyrosine kinase inhibitor of the TRK (tropomyosin receptor kinase) family of tyrosine kinase receptors (TRKA, TRKB and TRKC) and ROS1 proteins.
Goldstein wrote, “Results thus far show a competitive profile, and a lengthening duration of response (DOR) compared to the results released in April 2017. This, as well as yesterday’s receipt of PRIME designation from the EMA for NTRK solid tumors (Breakthrough designation had already been granted from the FDA), bodes positively for the NTRK arm, in our view. We see opportunity for entrectinib in multiple cancer indications and expect data in both ROS1 and NTRK in 2018.”
The analyst continued, “With strong interim data in hand, we see RXDX as having upside based on the possibility of partnership for ex-U.S. territories, additional ROS1 data, NTRK data as well as other clinical opportunities. While RXDX has indicated that they do not plan to pursue ALK-positive NSCLC, entrectinib does have ALK activity, which leaves the door open, in our view, for off label use if approved.”
The word of the Street is an overwhelmingly bullish one for this biotech stock, as TipRanks analytics exhibit RXDX as a Buy. Out of 6 analysts polled in the last 3 months, all 6 are bullish on Ignyta stock. With a return potential of 17%, the stock’s consensus target price stands at $19.
Ignyta is a precision oncology biotechnology company, engages in discovering, in-licensing or acquiring, developing, and commercializing molecularly targeted therapies for eradicating residual diseases.