In the biotech sector, barring regulatory approval, there’s nothing like positive – or negative, for that matter – clinical trial results to move a stock.
Fortunately for investors of Rubius Therapeutics (RUBY), on Monday, the former case rang true. Shares blasted off by 95% after the clinical-stage biopharma released promising early-stage results from the study of the company’s experimental cancer treatment.
In the ongoing phase 1/2 clinical trial of RTX-240 in patients with advanced solid tumors, the treatment displayed promising signs that it is effective and safe.
Specifically, one patient with metastatic anal cancer displayed a confirmed partial response (PR) to RTX-240 with a reduction in the size of the tumor following therapy. The treatment also elicited an unconfirmed PR in another patient with metastatic uveal melanoma. Additionally, the disease stabilizedin six patients.
H.C. Wainwright’s Andrew Fein calls the data a “pipeline de-risking event.”
“The early RTX-240 data provides clinical validation for the RED PLATFORM, providing proof-of-concept and proof-of-mechanism for engineered RBCs (red blood cells) to have a future in supporting the human immune system in targeting certain disease states,” the 5-star analyst said. “As the trial matures, we expect to see additional biomarker data to better understand the pharmacodynamic (PD) and tumor infiltration characteristics of RTX-240.”
Rubius’ RED PLATFORM’s purpose is to engineer red blood cells (RBCs) which copy the human immune system and prompt adaptive and innate immunity so to bring about clinical responses in cancer patients with refractory disease.
In 2H21, the company intends to kick off a Phase 1 trial of RTX-240 combined with anti-PD-1 therapy in advanced solid tumors.
“Based on the recent positive data outcomes for the RTX-240 program,” Fein said, “We are electing to increase our POS (possibility of success) estimate for RTX-240 to 12% (from 10%).”
The promising data also results in an increase to Fein’s price target; the figure moves from $28 to $40, suggesting upside of 25% from current levels. Unsurprisingly, Fein’s rating stays a Buy. (To watch Fein’s track record, click here)
Turning now to the rest of the Street, where following Monday’s surge, the share price has soared pass the analysts’ average price target. At $25.5, the figure now presents possible downside of 16%. Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and Holds, each. (See RUBY stock analysis on TipRanks)
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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.
