BioTuesdays

WB starts Pyxis Oncology at OP; $30 fair value estimate

Pyxis Oncology

William Blair launched coverage of Pyxis Oncology (NASDAQ:PYXS) with an “outperform” rating and fair value estimate of $30. The stock closed at $13.30 on Nov. 1. 

Pyxis Oncology is developing next-generation antibody-drug conjugates (ADCs) and monoclonal antibodies (mAbs) for the treatment of solid and hematologic malignancies. 

The company has in-licensed key assets and technology, including Pfizer’s Flexible Antibody Conjugation Technology platform, LegoChem linker technology, and a suite of novel immuno-oncology targets from the University of Chicago that provide long-term optionality, writes analyst Raju Prasad, Ph.D. 

“Initial ADC candidates provide multiple shots on goal, each with blockbuster potential,” Dr. Prasad said, pointing to PYX-201, PYX-202 and PYX-203. Pyxis has guided to IND submissions for PYX-201 and PYX-202 in mid-2022, and PYX-203 in 2023. 

“In our view, PYX-201 and PYX-202 are de-risked by previous clinical experience using the auristatin and MMAE payloadsrespectively,” Dr. Prasad said. PYX-201 also uses the same linker-payload combination and site-specific chemistry used previously in the Phase 1 clinical study of Pfizer’s HER2-targeted ADC, PF-06804103. PYX-203 combines a clinically de-risked target in acute myeloid leukemia, CD123, with a novel DNA-damaging CPI dimer payload, he added. 

Dr. Prasad is conservatively modeling PYX-201 achieving proof-of-concept (60% probability of success) in late-line non–small-cell lung cancer and triple-negative breast cancer; PYX-202 achieving proof-of-concept (60% probability of success) in small-cell lung cancer; and PYX-203 achieving proof-of-concept (25% probability of success) in acute myeloid leukemia.

“In our view, monotherapy activity in the clinic with any of these three programs could lead to 50% to 100% upside from current levels,” he added.

Sign up for the BioTuesdays weekly newsletter

Get the latest news on the healthcare industry’s corporate and clinical developments, executive moves, and market updates. Every Tuesday, in your inbox.