Pyxis Oncology initiated with an Outperform at Leerink

Leerink initiated coverage of Pyxis Oncology with an Outperform rating and $12 price target. The firm says its Pyxis’ valuation and thesis reflect its constructive view of the company’s lead clinical program, PYX-201, which is a first-in-class EDB-FN-targeted and first-in-concept tumor stroma-targeted antibody drug conjugate in Phase 1 dose escalation for advanced solid tumors. Leerink believes that PYX-201 is a competitively designed ADC that has the potential to demonstrate a differentiated clinical profile across a range of difficult-to-treat solid tumor types, either as a monotherapy or in combination with established and emerging standard-of-care, on the merits of its unique tumor stroma-targeted mechanism. The firm models peak risk-adjusted WW sales of $460M for PYX-201 in 2033.