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Chardan: Tocagen's Brain, Spinal Cord Tumor Candidate Has $877M Potential

Chardan: Tocagen's Brain, Spinal Cord Tumor Candidate Has $877M Potential
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Tocagen Inc (NASDAQ: TOCA), which focuses on developing cancer-selective gene therapies based on a retroviral replicating vector platform, has earned a bullish review from Chardan.

The Analyst

Analyst Gbola Amusa initiated coverage of Tocagen with a Buy rating and $30 price target, suggesting more than 250 percent upside.

The Thesis

Tocagen's lead asset Toca 511, a RRV that selectively infects cancer cells, and Toca FC, an orally administered, extended-release formulation of 5-flurorocytosine, are in a pivotal Phase 3 trial for high-grade gliomas, or HGG, which are tumors occurring in brain and spinal cord, Amusa said in a Thursday note.

The initial Phase 1 study produced impressive and in some cases durable results in rHGG patients who otherwise die in eight to 11 months, the analyst said.  

The Toca 511 and Toca FC Phase 3 trial is evaluating rHGG patients, Amusa said. Yet Tocagen is also testing the regiment in Phase 1 trials in newly diagnosed HGG and other advanced cancers.

Citing the robust data, the analyst estimates risk-adjusted 2030 sales of $877.6 million for Toca 511 and Toca FC in HGGs.

Chardan's bullish rating is due to "the risk-reward proposition on its pivotal, Phase III, BTD/PRIMEdesignated therapy, Toca 511 & Toca FC, for high-grade gliomas."

Interim data from the late-stage study is due in the first-half of 2019, Amusa said. 

The Price Action

Tocagen shares are down over 18 percent year-to-date.

The stock was trading up 6.08 percent to $8.90 off the open Thursday.

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The Daily Biotech Pulse: Verastem Gets New CFO, Mesoblast Earnings, Vertex's Precision Medicine Collaboration

The Week Ahead In Biotech: Conferences, PDUFA Dates And Clinical Trial Results

Latest Ratings for TOCA

Sep 2018B. Riley FBRMaintainsBuyBuy
Sep 2018CitigroupInitiates Coverage OnBuy
Aug 2018Chardan CapitalInitiates Coverage OnBuy

View More Analyst Ratings for TOCA
View the Latest Analyst Ratings

Posted-In: Chardan Gbola AmusaAnalyst Color Biotech Price Target Initiation Analyst Ratings General Best of Benzinga


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