Shares in Immunomedics Inc. (IMMU) surged almost 10% after the biotech company announced “positive” results from the Phase 3 study of its Trodelvy drug tested in previously treated patients with metastatic triple-negative breast cancer (mTNBC).
The stock rose to $41.13 in morning U.S. trading after Immunomedics said that the late-stage study of Trodelvy (sacituzumab govitecan) met primary endpoint of progression-free survival (PFS) compared to chemotherapy, as well as key secondary endpoints in brain metastasis negative patients with mTNBC who have previously received at least two prior therapies for metastatic disease.
Immunomedics said that Trodelvy is the first antibody-drug conjugate (ADC) shown to improve clinical outcomes in people with relapsed or refractory mTNBC who have received two prior therapies.
“Given the poor prognosis associated with mTNBC, we are excited that Trodelvy demonstrated improved clinical outcomes for these patients,” said Immunomedics Chief Medical Officer Loretta M. Itri. “We look forward to presenting full results at an upcoming medical conference, as well as sharing them with the FDA in support of the full approval of Trodelvy in this difficult-to-treat cancer.”
The safety profile of Trodelvy was consistent with the FDA-approved label and no new safety signals were observed, the study showed. TNBC is an aggressive type of breast cancer, accounting for up to 20% of all breast cancers. The disease is diagnosed more frequently in younger and premenopausal women and is highly prevalent in African American and Hispanic women.
The news prompted Piper Sandler analyst Joseph Catanzaro to raise the stock’s price target to $55 (34% upside potential) from $40, saying that the median progression free survival for Trodelvy in the third-line setting of 5.6 months was “remarkably on par” with first-line chemo.
Catanzaro added that he is now confident that the TROPiCS-02 study “has a very high chance of success.” The analyst maintained a Buy rating on the stock.
In line with Catanzaro’s outlook, the rest of the Street is bullish on the stock. The Strong Buy analyst consensus boasts 7 Buy ratings versus 2 Hold ratings. With shares up a whopping 93% so far this year, the $42.75 average price target implies a modest 4.6% upside potential in the shares in the coming year. (See Immunomedics stock analysis on TipRanks)
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