Janney Montgomery Scott initiated coverage of Y-mAbs Therapeutics (NASDAQ:YMAB) with a “buy” rating and fair value estimate of $45. The stock closed at $35.03 on April 30.
Y-mAbs is developing immunotherapies for neuroblastoma, a type of cancer that forms in certain types of nerve tissue, and additional tumor types with technology licensed from Memorial Sloan Kettering Cancer Center.
“With one rolling BLA submission completed in March and another submission to be completed in May, we believe Y-mAbs could soon have two FDA approvals by the end of 2020 and in early 2021, respectively,” writes analyst Zun Zhong.
The company’s naxitamab and omburtamab drug candidates have received rare pediatric disease designations as well as breakthrough therapy designations based on highly encouraging clinical data. There are no FDA-approved treatment options available for either indication – relapsed/refractory high-risk neuroblastoma and CNS/leptomeningeal metastases from neuroblastoma – and patient prognosis is poor.
“The small disease prevalence and the high patient concentration at limited number of medical centers should allow Y-mAbs to efficiently commercialize the drugs upon approvals,” Mr. Zhong said.
“We believe adoption rates should be high, given the clear clinical benefit and the lack of other treatment options,” he added. A vaccine and bi-specific antibodies in Y-mAbs’ pipeline that are not included in Janney’s valuation “should provide further long-term potential,” according to Mr. Zhong.
