BioTuesdays

SVB Leerink starts Athenex at OP; PT $22

Athenex

SVB Leerink launched coverage of Athenex (NASDAQ:ATNX) with an “outperform” rating and $22 price target. The stock closed at $11.45 on Oct. 23.

Analyst Jonathan Chang, Ph.D., writes that Athenex has leveraged its Orascovery platform to develop a pipeline of oral chemotherapy programs in multiple oncology indications. The company’s lead program, Oraxol, has demonstrated positive pivotal data in metastatic breast cancer and is currently under review by the FDA with a PDUFA date of Feb. 28, 2021.

Athenex also is developing Oraxol in additional settings that represent large commercial opportunities and has a pipeline of additional oral chemotherapy programs in Phase 1 development. The company’s earlier-stage pipeline represents upside to Mr. Chang’s estimates.

Citing a Leerink survey of 51 oncologists, Dr. Chang said the survey results and MEDACorp checks with key opinion leaders indicate strong enthusiasm among physicians for oral chemotherapies as a class, and “we view Athenex as well-positioned in this expanding market with a pipeline of oral chemotherapy agents in development.”

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