Brookline starts Fusion Pharma at buy; PT $15


Brookline Capital Markets launched coverage of Fusion Pharmaceuticals (NASDAQ:FUSN) with a “buy” rating and $15 price target. The stock closed at $7.53 on Feb. 2.

Fusion is a clinical-stage oncology company focused on developing and commercializing alpha-emitting radiopharmaceuticals for the treatment of cancer. The company’s lead asset, FPI-1434, is in a Phase 1/2 clinical trial for the treatment of IGF-1R expressing solid tumors

Analyst Kemp Dolliver writes that a partnership with AstraZeneca will develop combination therapies and novel targeted alpha therapies (TATs). Fusion’s TAT platform enables the development of therapies that link radioisotope Actinium-225 with a variety of targeting molecules, including antibodies, small molecules, and peptides. 

The two parties are collaborating on the discovery, development, and commercialization of novel TATs and combination therapies for the treatment of cancer. 

Mr. Dolliver said the collaboration includes the evaluation of up to five potential combination therapies, involving Fusion’s existing pipeline in combination with certain of AstraZeneca’s existing DNA damage response inhibitors and immuno-oncology agents. 

Fusion has announced the nomination of the first TAT candidate using an unnamed bispecific. The agreement includes co-development and co-funding of three TATs, and Fusion will have the option to co-commercialize (50/50 profit-loss share) the approved products in the U.S., he added.