Analyst Thinks This Company's Bone Marrow Cancer Treatment Can 'Transform Paradigm'

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  • SVB Leerink initiated coverage on CTI Biopharma Corp CTIC with an Outperform rating and a $13 price target
  • CTIC is a commercial-stage biopharmaceutical company launching Vonjo — a differentiated, next-generation JAK inhibitor for myelofibrosis.
  • SVB thinks Vonjo will transform the treatment paradigm and offer blockbuster sales potential. 
  • "In contrast to other targeted oncology launches, we think Vonjo will surpass expectations based on results from our proprietary MEDACorp survey of myelofibrosis-treating physicians, indicating a surprising potential for off-label usage," the analyst writes.
  • The price target indicates upwards of 170% upside from current levels, which can be realized as the commercial story unfolds over the next several years.
  • While CTIC represents a SMID-cap company launching a product against large commercial players like Incyte Corp INCY and GSK Plc GSK, the analyst thinks the competition has weaknesses. 
  • Incyte remains distracted with its dermatology launches, while Jakafi combination approaches remain multiple years away from market entry. 
  • GSK's momelotinib will likely not enter the market until mid-2023 and has safety concerns.
  • Price Action: CTIC shares are up 2.24% at $4.78 on the last check Monday.
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