This Cancer Focused Stock Has 60% Potential Upside, Bullish Analyst Says

  • HC Wainwright initiated coverage on Rain Therapeutics Inc RAIN, with a price target of $10 with a Buy rating.
  • With an upside of almost 60%, the analyst believes Rain's lead asset, milademetan, has the potential to become a tumor-agnostic therapy for MDM2 amplified cancers. 
  • Milademetan, in-licensed from Daiichi Sankyo DSNKY in 2020, is an oral MDM2 inhibitor that reactivates the tumor suppressor gene, p53. 
  • P53 is a key regulator of various cellular processes, including the cell cycle, DNA repair, and apoptosis.
  • Milademetan could address p53 inactivation across multiple p53 wild-type (WT) tumor types, representing about 50% of all cancers.
  • Rain is conducting a Phase 3 MANTRA trial in patients with well-differentiated / de-differentiated liposarcoma. 
  • Since the primary endpoint is based on a doubling of PFS, we believe Rain's Phase 1 data de-risks the upcoming Phase 3 data, slated for release in 1H23, writes HC Wainwright.
  • The analyst conservatively projects that milademetan could have a peak annual sales potential of nearly $1 billion from liposarcoma, non-small cell lung cancer (NSCLC), and breast cancer indications. 
  • Price Action: RAIN shares are up 12.60% at $6.42 on the last check Monday.
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