more_reports

Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: ELEV

Boston Biotech Reports Promising Interim Data
Research Report

View Important Disclosures for this Article
Share on Stocktwits

Source:

Interim efficacy data reported for Elevation Oncology Inc.'s (ELEV:NASDAQ) EO-3021 as a monotherapy is competitive and potentially could be superior as a combination therapy, according to an H.C. Wainwright & Co. research note.

H.C. Wainwright & Co. analyst Dr. Swayampakula Ramakanth, in a research report published on August 7, 2024, provided an update on Elevation Oncology Inc. (ELEV:NASDAQ) following the company's announcement of initial data from the dose escalation portion of its ongoing Phase 1 study evaluating EO-3021, a Claudin 18.2-targeting antibody-drug conjugate (ADC). The analyst reiterated a Buy rating and a price target of US$6.00 on the stock.

According to the report, Elevation Oncology reported promising results for EO-3021 in patients with advanced unresectable gastric, gastroesophageal junction (GEJ), esophageal, and pancreatic cancers that likely express Claudin 18.2.

Dr. Ramakanth highlighted the study's key findings, stating, "Of the seven evaluated patients that expressed Claudin 18.2 in ≥20% of tumor cells (IHC 2+/3+), three patients displayed confirmed partial responses, and two patients experienced stable disease for an objective response rate (ORR) of 42.8%, and a disease control rate (DCR) of 71.4%."

The analyst emphasized the favorable safety profile of EO-3021, noting, "EO-3021 exhibited a favorable tolerability, with no grade 4 or 5 treatment-emergent adverse events (TEAEs). Dose reductions due to AEs occurred in 28% (9/32) of patients, and 6% (2/32) of patients discontinued treatment due to AEs."

Dr. Ramakanth compared EO-3021's performance to competing therapies, stating, "We believe the interim efficacy data reported for EO-3021 as a monotherapy is competitive and potentially could be superior as a combination therapy. Additionally, the favorable safety profile could be a differentiating characteristic and could allow the drug to be evaluated as a combination therapy for patients with 20% or higher levels of Claudin 18.2 expression."

Elevation Oncology's strategic plans include advancing EO-3021 into monotherapy expansion and dose optimization, as well as initiating combination therapy studies with dostarlimab in a 1L setting and with ramucirumab in a 2L setting by the end of 2024.

The company reported no revenues and a net loss of US$0.18 per diluted share for Q2 2024, compared to the consensus estimate of a US$0.22 per share loss. Elevation Oncology ended the quarter with US$110.8 million in cash and cash equivalents, which Dr. Ramakanth believes "is sufficient to fund operations until 4Q26."

H.C. Wainwright's valuation methodology for Elevation Oncology is based on a risk-adjusted net present value (rNPV) analysis. "We derive our price target based on a risk-adjusted net present value (rNPV) analysis of projected future revenues from ELEV's product candidates, assuming a 20% probability of launch, a 12% discount rate, and a 0% terminal growth rate," Dr. Ramakanth explained.

With a Buy rating and a price target of US$6.00, representing a potential return of approximately 669% from the price at the time of the report of US$0.78, H.C. Wainwright sees significant upside potential for Elevation Oncology.


Want to be the first to know about interesting Biotechnology / Pharmaceuticals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  1. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 
  2. This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

For additional disclosures, please click here.

Disclosures for H.C. Wainwright & Co., Elevation Oncology Inc., August 7, 2024

This material is confidential and intended for use by Institutional Accounts as defined in FINRA Rule 4512(c). It may also be privileged or otherwise protected by work product immunity or other legal rules. If you have received it by mistake, please let us know by e-mail reply to [email protected] and delete it from your system; you may not copy this message or disclose its contents to anyone. The integrity and security of this message cannot be guaranteed on the Internet. H.C. WAINWRIGHT & CO, LLC RATING SYSTEM: H.C. Wainwright employs a three tier rating system for evaluating both the potential return and risk associated with owning common equity shares of rated firms. The expected return of any given equity is measured on a RELATIVE basis of other companies in the same sector. The price objective is calculated to estimate the potential movements in price that a given equity could reach provided certain targets are met over a defined time horizon. Price objectives are subject to external factors including industry events and market volatility.

H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer. I, Swayampakula Ramakanth, Ph.D., Li Chen, Ph.D., Arthur He, Ph.D., Sean Lee and Douglas MacPherson, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies. None of the research analysts or the research analyst’s household has a financial interest in the securities of Elevation Oncology, Inc. (including, without limitation, any option, right, warrant, future, long or short position). As of July 31, 2024 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Elevation Oncology, Inc..

Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report. The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services. The firm or its affiliates received compensation from Elevation Oncology, Inc. for non-investment banking services in the previous 12 months. The Firm or its affiliates did not receive compensation from Elevation Oncology, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report. The Firm does not make a market in Elevation Oncology, Inc. as of the date of this research report.

The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously. No part of this report may be reproduced in any form without the expressed permission of H.C. Wainwright & Co., LLC. Additional information available upon request. H.C. Wainwright & Co., LLC does not provide individually tailored investment advice in research reports. This research report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this research report. H.C. Wainwright & Co., LLC’s and its affiliates’ salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies that reflect opinions that are contrary to the opinions expressed in this research report. H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data on the company, industry or security discussed in the report. All opinions and estimates included in this report constitute the analyst’s judgment as of the date of this report and are subject to change without notice. Securities and other financial instruments discussed in this research report: may lose value; are not insured by the Federal Deposit Insurance Corporation; and are subject to investment risks, including possible loss of the principal amount invested.





Want to read more about Biotechnology / Pharmaceuticals investment ideas?
Get Our Streetwise Reports' Life Sciences Report Newsletter Free and be the first to know!

A valid email address is required to subscribe