Cantor starts Vincerx Pharma at OW; PT $25

Cantor Fitzgerald initiated coverage of Vincerx Pharma (NASDAQ:VINC) with an “overweight” rating and $25 price target. The stock closed at $10.30 on Dec. 22.

Vincerx is a clinical-stage oncology company that is on track to generate a number of key efficacy data points in 2022 from the Phase 1b studies of VIP152, a CDK9 inhibitor, in both blood cancer and solid tumors. 

“Our conviction on the program is based on the early but encouraging efficacy signal of VIP152 single-agent activity in double-hit (MYC and BCL2 or BCL6 aberration) diffuse large B-cell lymphoma and its best-in-class potential,” writes analyst Li Watsek. 

“We also think a biomarker-guided approach in MYC-driven cancers should further enhance the signal and pave the way for an accelerated approval pathway,” she added. 

Ms. Watsek said her checks with physicians suggest that VIP152 can carve out some space in hematological malignancies, where patients are underserved by current therapies. 

In addition, she said Vincerx has a highly innovative next-generation bioconjugation platform that includes small-molecule drug conjugates and next-generation antibody-drug conjugates. 

“We think this platform has the potential to drive significant upside and offer optionality. Collectively, we view the stock as undervalued ahead of the 2022 readouts,” Ms. Watsek added.