Analysts for H.C. Wainwright and Cantor Fitzgerald raised their price targets for Checkpoint Therapeutics (NASDAQ:CKPT) to $26 and $20, respectively, after the company reported positive pivotal data with anti-PD-L1 antibody, cosibelimab, in patients with metastatic cutaneous squamous cell carcinoma (cSCC).
Shares of Checkpoint closed at $2.19 on Jan. 24.
Wainwright analyst Joseph Pantginis, Ph.D., writes that the primary endpoint of the study was met, with a 47.4% ORR based on RECIST 1.1, and the median duration of response has still not been reached (76% of responses remain ongoing). “Durability is exciting to us with the longest response out beyond 32 months,” he added.
Cantor analyst Jennifer Kim said the data checks the right boxes and provides “further validation around cosibelimab’s potential to capture share within the competitive PD-L1 market (about $30-billion and growing), especially given the company’s strategy to offer cosibelimab at a lower net price upon approval.”
Dr. Pantginis, who raised his price target to $26 from $17 and reiterated his “buy” rating, said the data compare favorably to the cSCC data generated by Libtayo and Keytruda, albeit through cross-trial comparisons and the plan for filing the BLA later this year remains unchanged.
“In our opinion, Checkpoint has now seen a transformative shift in its thesis; while investors have remained on the sidelines, positive pivotal data, a differentiated commercialization strategy, and a likely de-risked non-small cell lung cancer program with cosibelimab, make the valuation compelling,” Dr. Pantginis said.
Ms. Kim reiterated her “overweight” rating and raised her price target to $20 from $16.
“Mention of cosibelimab’s potential favorable safety profile stood out to us, and we think positive takeaways from today’s data could go beyond cSCC,” she added.
