Patrick Trucchio, an analyst from H.C. Wainwright, reiterated the Buy rating on Oncolytics Biotech. The associated price target remains the same with $5.00.
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Patrick Trucchio has given his Buy rating due to a combination of factors that highlight the potential of Oncolytics Biotech’s lead immunotherapy program, pelareorep. The recent interim data from the Phase 1/2 GOBLET trial in squamous cell anal carcinoma (SCAC) showed a significant improvement in objective response rate when pelareorep was combined with atezolizumab, outperforming the historical benchmark set by the only FDA-approved treatment for this indication. This suggests a promising path for accelerated approval, particularly given the rare and challenging nature of SCAC.
Additionally, the durability of responses observed in the trial, with some patients achieving complete responses lasting over a year, reinforces the therapeutic potential of pelareorep. Trucchio’s valuation of Oncolytics Biotech incorporates a risk-adjusted discount cash flow model, accounting for the potential revenue from pelareorep’s development in gastrointestinal cancers. Despite acknowledging risks such as clinical development and capital market uncertainties, the overall assessment leads to a $5 price target, supporting the Buy rating.
Trucchio covers the Healthcare sector, focusing on stocks such as Precision BioSciences, Arrowhead Pharmaceuticals, and Aligos Therapeutics. According to TipRanks, Trucchio has an average return of 29.8% and a 51.85% success rate on recommended stocks.
In another report released today, Lake Street also maintained a Buy rating on the stock with a $7.00 price target.