Though many biopharma companies recorded soft sales in the first quarter due to the pandemic, these companies continue to hit the headlines. While the coronavirus treatments are poised to remain in the spotlight, other regulatory and pipeline developments have rebounded after being impacted by the pandemic.
For biopharma stocks, factors including clinical trial data, regulatory decisions, and successful commercialization of drugs are sometimes much more important than earnings results in evaluating the prospects of the company. That’s because a few years are needed for any newly-approved drug to contribute to the company’s top line, as it involves huge R&D costs.
Therefore, amid the increasing need for successful drugs and treatments in the healthcare sector to meet the rising needs of patients, the biopharmaceutical company Nurix Therapeutics (NASDAQ: NRIX) has been able to emerge triumphant, and now signals long-term opportunities. The company is focused on the discovery, development, and commercialization of small molecule therapies. These are designed for the treatment of cancer and immune disorders.
Recently, following the company’s fiscal second-quarter earnings and clinical programs update, Needham analyst Chad Messer reiterated a Buy rating and a price target of $48 (111.4% upside potential) on the stock.
According to Messer, Nurix seems well-established for operations past initial clinical readouts with a cash position of $496 million as of May 31, 2021. (See Nurix stock chart on TipRanks)
The analyst further elaborated that Nurix’s recent initiation of the Phase I study of NX-2127 in relapsed B-cell malignancies is expected to generate data by the end of this year. NX-2127 is an orally bioavailable degrader of BTK with immunomodulatory drug (IMiD) activity.
Along with the earnings update, management added that CBL-B Programs remain on track to be initiated by the end of 2021. The analyst believes that oral NX-1607, a CBL-B inhibitor, and T-cell activator and DeTIL-0255, are expected to undergo clinical trials by the year-end.
Addition, Nurix is partnering with Gilead and Sanofi on several therapeutic programs, the analyst added.
In line with Messer’s bullish stance, Nurix is a Strong Buy based on 5 unanimous Buys. The average Nurix price target of $48.80 implies upside potential of 114.9% from the current levels. Nurix shares have increased 19.5% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Nurix, with 22.1% of investors maintaining portfolios on TipRanks increasing their exposure to Nurix stock over the past 30 days.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.
