On Friday, Pyxis Oncology Inc. (NASDAQ:PYXS) shares, a biotechnology company focused on developing novel cancer therapies, received a revised price target from RBC Capital. The firm's analyst has adjusted the price target on the company's shares to $8.00 from the previous $10.00 while maintaining an Outperform rating on the stock.
Currently trading at $1.52, near its 52-week low and below its Fair Value according to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 7.33.
The adjustment comes after Pyxis Oncology announced an update on its pipeline. The company is sharpening its focus on the development of its EDB-FN ADC PYX-201 drug. RBC Capital notes that this strategic move is sensible due to the early indications of the drug's effectiveness.
The firm highlights that operational expenditure savings will be redirected to further the development of PYX-201. InvestingPro data reveals the company is quickly burning through cash, though it maintains more cash than debt on its balance sheet - just two of several key insights available to subscribers.
The decision to prioritize the development of PYX-201 is seen as a way to simplify the company's narrative as it prepares for additional study results expected in 2025. These future studies are anticipated to provide clearer evidence of the drug's efficacy in patients who have not undergone extensive prior treatments.
RBC Capital's revised price target reflects a balance between the anticipated operational expenditure savings and the narrowed scope of the company's pipeline. Despite the reduced pipeline optionality, the firm remains positive about the potential of PYX-201. RBC Capital suggests that investors consider buying shares in anticipation of the data expected to emerge in 2025, which could further substantiate the drug's activity.
In other recent news, Pyxis Oncology, Inc. has made significant strides in advancing its lead clinical program, PYX-201, an antibody-drug conjugate designed to target tumor extracellular matrix components.
The decision to prioritize PYX-201 comes after positive preliminary data from an ongoing Phase 1 trial, showing promising results in various solid tumors, particularly in head and neck squamous cell carcinoma. This focus has led to the suspension of investment in another clinical program, PYX-106, to allocate resources more efficiently.
Recent developments include the expansion of Pyxis Oncology's equity and incentive plan with the addition of 5.5 million shares, as approved by stockholders. The company has also sold royalty rights to Novartis AG (SIX:NOVN) for $8 million, which will be used to advance the development of PYX-201.
Analysts from H.C. Wainwright, Stifel, Jefferies, and RBC Capital have all given the company a Buy or Outperform rating.
For the quarter ending June 2024, Pyxis Oncology reported no revenues but a net loss of $0.29 per share, less than the anticipated loss of $0.34 per share. H.C. Wainwright projects that Pyxis will generate revenues of $16 million and incur a net loss of $0.89 per share in fiscal year 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.