Immunomedics Shares Double as Promising Results Halt Breast Cancer Drug Study
Immunomedics Inc’s shares (IMMU) more than doubled after the biotech company said a study of its breast cancer drug was halted early on “compelling evidence of efficacy.”
The biotech company said the decision to halt the Phase 3 cofirmatory study of its sacituzumab govitecan drug for the treatment of metastatic triple-negative breast cancer was based on the unanimous recommendation by the independent Data Safety Monitoring Committee (DSMC).
“The remarkable results we observed across multiple endpoints in the study warranted early discontinuation of the trial and are indicative of a potential major advance in the treatment of this devastating disease that affects younger women and African American women at higher rates,” said Julie R. Gralow, Professor of Breast Cancer at the University of Washington School of Medicine and Member of the Fred Hutchinson Cancer Research Center.
Following the news, five-star analyst Jim Birchenough at Wells Fargo raised Immunomedics to Buy from Hold with a $34 price target. Birchenough expects the sacituzumab govitecan drug to become a standard of care for the treatment of triple negative breast cancer and sees “significant opportunity for expanded use across other solid tumors including other forms of breast cancer as well as bladder cancer.”
Overall Wall Street analysts have a Moderate Buy consensus rating on the biotech’s stock based on 2 Buys and 1 Hold. The $25 average price target implies 38% upside potential in the shares in the coming year. (See Immunomedics stock analysis on TipRanks).
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