Market Overview

Raymond James Sees $1B Potential In Loxo Oncology's Vitrakvi, LOXO-95

Share:
Raymond James Sees $1B Potential In Loxo Oncology's Vitrakvi, LOXO-95
Related LOXO
The Daily Biotech Pulse: Abeona Fires CEO, Loxo Passes FDA Muster, Bristol-Myers Flunks Lung Cancer Trial
The Week Ahead In Biotech: ASH 2018, PDUFA Dates, Clinical Trials And Earnings

The FDA announced approval Monday of Loxo Oncology Inc (NASDAQ: LOXO) and Bayer AG (OTC: BAYRY) Vitrakvi — chemically larotrectinib — for adults and pediatric patients with advanced or metastatic solid tumors that have a neurotropic receptor tyrosine kinase, or NTRK, gene fusion without a known acquired resistance mutation.

The Analyst

Raymond James analyst Dane Leone maintained a Strong Buy on Loxo with a $235 price target.

The Thesis

The PDUFA outcome came in line with Raymond James' positive outlook on Vitrakvi, Leone said in a Monday note. (See the analyst's track record here.) 

A review of the label did not bring any surprises or unexpected annotations regarding toxicity of the drug, he said. 

The analyst projects that Bayer, which shares 50 percent of commercialization costs for the drug and is entitled to 50 percent of profits, will qualify for a priority review voucher that could be used to expedite its other drug candidates.

Although Leone said he expects the commercial launch to be limited by the number of NTRK+ cancer patient cases and identification methodology, he forecast for Vitrakvi and LOXO-195 to collectively generate sales of over $1 billion in 2026.

The expectation is premised on the potential for premium pricing, given the small patient population, unmet need and efficacy and the impressive duration of response, according to Raymond James. 

The Price Action

Loxo shares were slipping 6.23 percent to $143.19 at the time of publication Tuesday. 

Related Links:

The Daily Biotech Pulse: Abeona Fires CEO, Loxo Passes FDA Muster, Bristol-Myers Flunks Lung Cancer Trial

The Week Ahead In Biotech: ASH 2018, PDUFA Dates, Clinical Trials And Earnings

Latest Ratings for LOXO

DateFirmActionFromTo
Nov 2018CitigroupMaintainsBuyBuy
Nov 2018Raymond JamesInitiates Coverage OnStrong Buy
Nov 2018JMP SecuritiesMaintainsMarket OutperformMarket Outperform

View More Analyst Ratings for LOXO
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech News Price Target Reiteration FDA Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (BAYRY + LOXO)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DESPKeyBancInitiates Coverage On0.0
MELIKeyBancInitiates Coverage On0.0
ALBKeyBancMaintains120.0
AVNSKeyBancMaintains67.0
ABTCredit SuisseInitiates Coverage On82.0
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.

Premier Fintech Digital Media Platform, Leading Cannabis Big Data Shop Team Up To Bring Data-Backed Expertise To Legal Cannabis Markets Worldwide

Analysts Love CVS Health Shares Following Aetna Deal