Ladenburg Thalmann raised its price target for Ignyta (NASDAQ:RXDX) to $31 from $20.25 based on expectations for entrectinib to be first line therapy for ROS1+ non-small cell lung cancer (NSCLC).
The stock was changing hands at $16.10, up $1.75, or 12%, in the morning session on Oct. 18.
“Our revised outlook is related to positive update on 32 patients presented at the World Conference on Lung Cancer meeting, including DOR [duration of response] of 28.6 months and PFS [progression free survival] of 29.6 months,” writes analyst Kevin DeGeeter. “About 53% of patients remain on therapy, which, in our view, offers the opportunity for further upside.”
Assuming the World Lung data are replicated in the full Phase 2 dataset, Mr. DeGeeter said entrectinib should be the preferred frontline therapy for all ROS1+ NSCLC patients.
He cited clear CNS activity to both treat patients presenting with CNS active disease and to potentially prevent CNS metastases, and superior DOR, suggesting all patients may receive a longer benefit from therapy.
Ignyta also is in active discussions with potential partners for commercial rights to entrectinib outside of the U.S. “An international partnership could offer a significant near-term catalyst for shares of Ignyta,” he added.
