On Friday, Stifel made an adjustment to the price target of Nuvalent (NASDAQ:NUVL), reducing it to $103.00 from the previous $105.00, while continuing to recommend the stock as a Buy.
The firm's analyst noted Nuvalent's confirmation of its objectives to achieve the first approved cancer drug by 2026 for a pretreated NSCLC (non-small cell lung cancer) population. The company's focus is on the upcoming details for the pivotal strategy of NVL-655, an ALK TKI, which is seen as a significant multi-billion dollar opportunity.
Nuvalent's management has addressed investor inquiries regarding the potential control arm in their pivotal trial, particularly whether it would include lorlatinib, which is currently being promoted by Pfizer (NYSE:PFE) with a 5-year data update at the ASCO meeting.
Despite these questions, Nuvalent's leadership maintains that alectinib remains the standard of care. The company plans to provide updates on phase 1/2 data for both zidesamtinib (ROS1) and NVL-655 in the second half of 2024.
The analyst from Stifel highlighted the importance of the forthcoming updates on NVL-655, which could significantly impact the company's ability to support its single-arm regulatory strategy for the second-line ALK treatment without the need for randomization against lorlatinib. This strategy has received mixed reactions from investors, but the analyst's stance suggests confidence in Nuvalent's approach.
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