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Investing.com - Goldman Sachs initiated coverage on ORIC Pharmaceuticals (NASDAQ:ORIC) with an Early-Stage Biotech rating on Thursday. The clinical-stage biotech company, currently trading at $10.98, has seen its shares surge 36% year-to-date according to InvestingPro data, reflecting strong investor interest despite the company not yet being profitable.
The clinical-stage biotechnology company focuses on developing oncology candidates that address resistance in cancer, with its name reflecting this mission (Overcoming Resistance In Cancer). ORIC’s lead programs are currently in Phase 1b development for prostate cancer (ORIC-944) and lung cancer (enozertinib), with plans to initiate registrational studies for both in 2026. With a market capitalization of $1.07 billion, ORIC maintains a strong financial position, boasting a current ratio of 14.65 and holding more cash than debt on its balance sheet.
Goldman Sachs identified prostate cancer treatment as ORIC’s key opportunity, citing the drug’s de-risked mechanism of action, differentiated profile, large addressable market, and the indication’s history of strategic value. The firm estimates peak sales for ORIC-944 at $2.6 billion with a 40% probability of success. This optimistic outlook aligns with broader analyst sentiment, as InvestingPro reveals that 6 analysts have recently revised their earnings upwards for the upcoming period, with price targets ranging from $15 to $25 per share.
For ORIC-944, Goldman Sachs compared it to Pfizer’s more advanced mevrometostat, suggesting there is room for ORIC’s potentially differentiated treatment ahead of dose optimization results and an expected registrational study initiation in the first half of 2026.
While enozertinib has demonstrated a viable profile in lung cancer, Goldman Sachs notes it targets rare lung cancer populations with a smaller addressable market and faces greater competitive intensity, estimating peak sales of $800 million across multiple lines of therapy with a 44% probability of success.
In other recent news, ORIC Pharmaceuticals has reported positive data from its Phase 1b trial of ORIC-944, a drug aimed at treating metastatic castration-resistant prostate cancer. The trial results revealed a 55% PSA50 response rate and a 20% PSA90 response rate, with significant reductions in circulating tumor DNA observed in 76% of patients. Additionally, the company published a peer-reviewed paper in the journal Cancer Research detailing the development of enozertinib, a promising drug for non-small cell lung cancer. The paper highlighted enozertinib’s selectivity, potency, and anti-tumor activity, with a notable case of complete response in a patient with brain metastases. Evercore ISI recently initiated coverage on ORIC Pharmaceuticals with an Outperform rating, citing ORIC-944’s potential in prostate cancer as a key factor. Wolfe Research also began coverage, giving the company a Peerperform rating and expressing cautious optimism about its PRC2 inhibition program. These developments reflect ORIC Pharmaceuticals’ ongoing efforts in advancing its cancer treatment pipeline.
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