Sesen Bio Inc (NASDAQ:SESN), formerly known as Eleven Biotherapeutics (EBIO) before last week’s fresh rebranding to prioritize drug development in the oncology market, has inspired one bull to get even more bullish. The name change is another “positive,” allowing the company to gain true recognition for its latest triumphs spanning beyond the dry eye space; including the likes of promising initial 3-month VISTA data in BCG-refractory non-muscle invasive bladder cancer (NMIBC).
H.C. Wainwright analyst Swayampakula Ramakanth sees compelling potential from the top-line data from the pivotal Phase 3 trial evaluating Vicinium that tracks encouragingly for a positive VISTA.
In reaction to the presentation at the American Urological Association (AUA) Annual Meeting, the analyst reiterates a Buy rating on SESN stock while bumping up the price target from $2 to $3.50, which implies a close to 54% upside from current levels. (To watch Ramakanth’s track record, click here)
The company posted data from the first 77 patients in a 134-patient trial , including co-primary endpoints of complete response rate at 12 months coupled with duration of response, as well as secondary endpoints of event-free survival, progression-free survival, overall survival, and time to cystectomy. The verdict: SESN’s drug Vicinium seems to be well-tolerated. Only 13% patients of the 81% that indicated adverse events suffered from serious adverse event, with just 4% of patients reporting adverse events that appear to be treatment-related.
Ultimately, “In our view, the reported 3-month safety and efficacy results are well in-line with what Vicinium achieved in the previous Phase 2 study. In the Phase 2 study, which used a slightly different induction and maintenance schedule, patients treated with Vicinium achieved a 3-month response rate of 40% (n=45) (Exhibit 4). Therefore, we believe that VISTA is well on-track to report similar 12-month response rate and duration of response results as the Phase 2 study, which we believe would be sufficient to support regulatory approval. As a result, we are increasing our estimate of VISTA’s probability of success to 85% from 65%, and increasing our 12-month price target to $3.50 per share, up from $2.00. Note that despite yesterday’s drop of nearly 23% […] SESN shares have appreciated by about 71% over the last one year (compared to S&P 500 gain of 14%). We believe the market is underestimating the initial VISTA readout and hence will remain buyers of SESN stock at the current valuation,” surmises Ramakanth, angling for final 12-month VISTA results to be out in the first quarter of next year, Vicinium to hit the market by the close of next year, and $210 million in annual risk-adjusted revenues by 2030.
TipRanks showcases encouraging initial bullish word circulating this drug maker, with 2 analysts polled in the last 3 months both rating a Buy on the stock. With a solid return potential of nearly 52%, the stock’s consensus target price stands tall at $5.00.