William Blair initiated coverage of POINT Biopharma Global (NASDAQ:PNT) with an “outperform” rating based on a view that the Street is “underestimating the clinical and commercial potential of the company’s radiopharmaceutical platform.” The stock closed at $6.81 on July 5.
“Given increasing interest in targeted radiation-based therapies in the oncology field, we believe investors could benefit from staying on top of the trend that radiopharmaceuticals will likely emerge as an important part of the cancer armamentarium in the near future,” writes analyst Andy Hsieh, Ph.D..
“Driven by a growing influx of investment from both large pharmaceutical companies and the investment community, we have observed robust growth in the number of early-stage pure plays in what we view as a highly promising and lucrative industry,” he added.
Dr. Hsieh said he believes an investment in this space could present a significant growth opportunity. In fact, based on an analysis using conservative assumptions, potential oncology markets served by radiopharmaceuticals could reach $15-billion in the United States alone, with a bear-case estimate of $4.5-billion, and a bull-case estimate of more than $37-billion.
“We believe that an investment in POINT will allow investors to capture this rapidly evolving trend and benefit from the market’s rapid expansion,” he said, adding that POINT has advanced two assets to Phase 3 trials and built out one of the world’s largest radiopharmaceutical manufacturing facilities—all within three years as a company.
