Market Overview

Surface Oncology Offers 'Robust Pipeline,' Baird Says In Bullish Initiation

Share:
Surface Oncology Offers 'Robust Pipeline,' Baird Says In Bullish Initiation
Related
74 Biggest Movers From Friday
The Daily Biotech Pulse: AbbVie Takes Full Control Of Cystic Fibrosis Program, Amgen Slashes Cholesterol Drug Price

Clinical-stage biopharma Surface Oncology, Inc. (NASDAQ: SURF) has developed a prosperous pipeline that targets the tumor micro-environment and leverages the innate and adaptive immune system, according to Baird Equity Research. 

The Analyst

Analyst Michael Ulz initiated coverage of Surface Oncology with an Outperform rating and $23 price target.

The Thesis

In the next few years, Ulz said he anticipates "meaningful upside" stemming from early clinical data on antibodies that inhibit CD47, such as SRF231. This candidate is the most advanced in development and enables macrophages to attack tumor cells, he said. (See the analyst's track record here.) 

“In preclinical studies, SRF231 has demonstrated potent activity both as a monotherapy and in combination with other cancer therapies and is currently in a Phase 1 study, with initial data expected in the first half of 2019. Multiple competitors are targeting CD47, which has provided early clinical target validation.”

The drug has broad utility and a differentiated safety profile, Ulz said. SRF231 should serve as Surface's value driver, he said. 

A Novartis AG (NYSE: NVS) partnership should target the adenosine pathway, leading to immunosuppression, Ulz said.

“NZV930 (inhibits CD73), partnered with Novartis, is currently in a Phase 1 study, with data expected in the second half of 2019. SRF617 (inhibits CD39) represents a unique opportunity by targeting further upstream in the adenosine pathway and is expected to enter the clinic in late 2019.”

Supplementary pipeline opportunities like IL-27 have demonstrated encouraging activity in preclinical research, while additional programs will target macrophages, T cells and natural killer cells, Ulz said.

“Overall, Surface has built a robust pipeline consisting of seven immunotherapy programs, with two currently in the clinic and four in total expected to be in the clinic by 2020.”

Price Action

Surface Oncology shares were rallying 9.14 percent to $11.46 at the time of publication Wednesday. 

Related Links:

Regeneron To Make $100M bluebird bio Investment In Cancer Research Collaboration

The Daily Biotech Pulse: Johnson & Johnson's Generic Unit Files NDA For Urinary Tract Cancer Drug, G1 Therapeutics Prices Offering

Latest Ratings for SURF

DateFirmActionFromTo
Sep 2018BairdInitiates Coverage OnOutperform
May 2018Goldman SachsInitiates Coverage OnNeutral
May 2018Cowen & Co.Initiates Coverage OnOutperform

View More Analyst Ratings for SURF
View the Latest Analyst Ratings

Posted-In: Baird Equity Research BiopharmaAnalyst Color Biotech Price Target Initiation Analyst Ratings General Best of Benzinga

 

Related Articles (NVS + SURF)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DLTRBernsteinUpgrades0.0
CNPUBSUpgrades34.0
UGIUBSDowngrades63.0
ATOUBSDowngrades106.0
CSCONomuraDowngrades50.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Could Sector Rotation Be The Reason For AMD's Recent Weakness?

2-In-5 American Cardholders Have Fallen Victim To Credit Card Scams