Investor Opportunities Ahead of Clinical Updates, Says Analyst Initiating Coverage on Ambrx Biopharma with 'Buy' Rating

B Riley Securities has initiated Ambrx Biopharma Inc AMAM with a Buy rating and a price target of $26 per share. 

The analyst notes much excitement surrounding antibody-drug conjugates (ADCs), as demonstrated by mega M&A and cross-border deals, most recently Seagen Inc SGEN being acquired by Pfizer Inc PFE for $43 billion. 

AMAM is an ADC platform company leveraging an expanded genetic codon to enable site-specific selective conjugation of payloads to an antibody, the analyst writes.

Also Read: Ambrx Biopharma's Oncology Pipeline Is Underappreciated, Analyst Initiating Coverage Says.

AMAM is developing two assets - ARX517 for colorectal cancer and ARX788 for HER2+ mBC (breast cancer).

Overall, there is an increasing market opportunity for ARX517 in mCRPC with and without prior Novartis AG's NVS Pluvicto treatment and for ARX788 in HER2+ mBC after AstraZeneca Plc's AZN Enhertu. 

The analyst recommends that investors build positions ahead of the anticipated clinical updates of ARX517 at ESMO'23 and ARX788 at SABCS'23. 

Price Action: AMAM shares are up 1.03% at $14.67 on the last check Wednesday.