Tocagen Inc 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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