It’s been a good week for investors of Pyxis Oncology (NASDAQ:PYXS), to say the least. Over the past 4 sessions Pyxis shares have gained 170%, bringing the year-to-date haul to a mighty 340%.
This biotech micro-cap is backed by Pfizer, which is largely responsible for the recent rally. According to a recent SEC filing, the pharma giant loaded up on 1,811,594 PYXS shares earlier this month for a total sum of $5 million, paying $2.76 per share. This raised Pfizer’s ownership in Pyxis to 5,952,263 shares. Pyxis nabbed a licensing agreement with Pfizer in 2021 to develop antibody-drug conjugates utilizing Pfizer’s tech.
The news came off the back of the company announcing that the first person had been dosed in a phase 1 trial of novel antibody-drug conjugate (ADC) PYX-201 for solid tumors. Positive results from the study could be a game changer for the company, says LifeSci Capital analyst Adam Evertts.
“We know that ADCs can be powerful and change the standard of care in cancer with Enhertu and Padcev as recent examples. Initial efficacy data showing clinical responses with PYX-201, which addresses a novel target, would be transformative for Pyxis,” Evertts explained.
That’s not the only potential catalyst ahead. The first patient should be dosed in Q2 in Phase 1 testing of PYX-106. The study is a first-in-human dose escalation trial in patients with tumors that are understood to show high M2 macrophage infiltration and Siglec-15 expression.
Early data readouts from both studies are expected between late-2023 and early-2024.
Elsewhere, in its recent financial update, the company said it saw out 2022 with $180.7 million in cash, which Evertts notes should “fund operations into the first half of 2025 and comfortably into initial clinical data from lead programs.”
If you think you’ve missed the boat on this one, think again. Not only does Evertts have an Outperform (i.e., Buy) rating for the shares, but his $9 price target leaves room for further gains of 51%. (To watch Evertts’ track record, click here)
Only one other analyst has recently chimed in with a PYXS review but their take is even more optimistic; combined, the average target stands at $12.50, implying the shares will deliver additional returns of 110% over the one-year timeframe. (See PYXS stock forecast)
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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 own analysis before making any investment.
