CG Oncology initiated with a Neutral at Goldman Sachs

Goldman Sachs analyst Corinne Johnson initiated coverage of CG Oncology with a Neutral rating and $42 price target. The firm believes the oncolytic virus cretostimogene has the potential to transform the non-muscle invasive bladder cancer treatment landscape. Thus far, cretostimogene has shown favorable clinical data across multiple studies in high-risk, BCG-unresponsive patients, including the recent interim results of the pivotal Phase 3 BOND-003 study. Topline data featuring 12-month efficacy data for the study is expected by year-end 2024, per management. Additionally, Goldman thinks these data positively read-across to studies in high-risk, BCG-exposed and recurrent intermediate-risk patients. Based on its assessment of cretostimogene’s existing data and market opportunity in NMIBC, the firm sees an unadjusted peak sales opportunity for CGON of $2.4B in NMIBC. However, Goldman believes these opportunities are well captured by current valuation.