BTIG more than halved the price target for NextCure (NASDAQ:NXTC) to $27 from $61 after the company announced that its NC318 immunoncology antibody would not be moving forward into stage 2 of the Simon-2-stage trial in non-small cell lung cancer (NSCLC) and ovarian cancer cohorts, though a review of the biomarker data from the cohorts is not yet complete.
Shares of NextCure tumbled $9.73, or 54%, to $8.15 in heavy turnover on July 13.
“Though this announcement is disappointing in the context of early responses seen in NSCLC, NextCure continues to work on Siglec-15 assay development and to assess it as a biomarker,” writes analyst Robert Hazlett.
He said NC318 monotherapy development in NSCLC and ovarian patients could continue depending on additional biomarker data, which is expected by yearend. NC318 combination studies with chemotherapy in various settings also continues to be contemplated, he added.
“We believe meaningful potential remains for NextCure and NC318, especially as Siglec-15 biomarker data emerges, and as NC410 advances into the clinic, though we have increased our discount rates for NC318 in NSCLC and ovarian indications, and removed potential M&A considerations,” Mr. Hazlett said.
