Nuvalent initiated with a Buy at Stifel

Stifel initiated coverage of Nuvalent with a Buy rating and $65 price target. The firm acknowledges that “bullish positioning” ahead of phase 1 cancer drug data derived from heavily-pretreated patients has “been a losing trade for ~2 years” as such updates typically yield low ORRs and short durability. However, ahead of Nuvalent presenting its first NVL-655 phase 1 data in October, the firm believes the “total profile should demonstrate evidence for lorlatinib-like 1L properties without the toxicity” and tells investors that a “future head-to-head victory against alectinib could net” $2B-$3B per year in sales.