BofA Securities Starts Spring Works Therapeutics (SWTX) at Buy on Rare Tumor Drug Differentiator
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BofA Securities analyst Alec Stranahan initiates coverage on Spring Works Therapeutics (NASDAQ: SWTX) with a Buy rating and a price target of $45.00.
The analyst commented, "SpringWorks is developing its two leading pipeline assets – nirogacestat and mirdametinib, as monotherapy targets for desmoid tumors (DT) and NF1-PN respectively. Both are rare indications with limited coverage, there are no FDA-approved therapies for DT while selumetinib (AstraZeneca) was only recently approved as the first therapy for treatment of NF1-PN in pediatric patients. Advanced-stage study with promising efficacy metrics (ORR: 41%) places nirogacestat at a prime position to become first approved DT therapy and disrupt currently deficient SOC. Similarly, favorable efficacy and tolerability for mirdametinib opens opportunity for SpringWorks
to one-up selumetinib by being the first approved therapy for NF1-PN in both children and adults. Concerns however remain with regards to the small market size and potential for competition to cap revenues and profits from these indications if approved. That said, the balance of best-in-class or best-in-disease potential, plus multiple shots on goal in larger indications across SpringWorks’ pipeline underpins our Buy rating and $45 PO."
Shares of Spring Works Therapeutics closed at $24.18 yesterday.
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