- Needham has initiated coverage on Theseus Pharmaceuticals Inc THRX with a Buy rating and a price target of $22.
- Theseus' discovery platform incorporates its structure-guided drug design and predictive resistance assay (PRA) to develop therapies addressing resistance to existing targeted treatments.
- The analyst says that PRA is a refined version of the translational approach utilized by management when it was at Ariad, which Takeda Pharmaceutical Company Limited TAK acquired in 2017 for $5.2 billion.
- Theseus' lead product candidate, THE-630, is a pan-variant KIT inhibitor for patients with advanced gastrointestinal stromal tumors (GIST).
- Also see: HC Wainwright Sees Over 300% Upside In This Cancer-Focused Stock.
- Needham writes that THE-630 can beat Pfizer Inc's PFE Sutent (sunitinib) in a head-to-head in 2L GIST. It expects sales of ~$900 million in 2L and ~$350 million in 5L GIST in 2035.
- The analyst notes that THRX is trading at over 60% discount to its October 2021 IPO price of $16/share, primarily attributable to relative underperformance to the failure of Deciphera Pharmaceuticals Inc's DCPH ripretinib in Nov 2021.
- Positive data from THE-630 in 2Q23 and 4Q23 can help build investor confidence.
- Price Action: THRX shares are up 7.82% at $5.93 on the last check Wednesday.
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