Stifel Is Bullish On This 'Competitive Late-Comer' In Gastric Cancer Space

Stifel has initiated coverage on Theseus Pharmaceuticals Inc THRX with a Buy rating and a $24 price target.
The company's Predictive Resistance Assay was validated by Deciphera Pharmaceuticals Inc's DCPH INTRIGUE subgroup data published recently in January.
The analyst contends that data increases the likelihood that THE-630 achieves pan-KIT inhibition, adding that THE-630 is "competitive as a late-comer" based on better convenience and tolerability.
The analyst notes that THE-630 has a high clinical PoS and the ability to be a strong competitor in the estimated $1bn+ total addressable market for branded GIST drugs.
Related: Analyst Bullish On Theseus Pharma's Platform For Gastric Cancer Therapies.
It expects peak sales of $450 million, primarily from the 2L GIST setting.
Stifel analyst writes that THE-630 will likely achieve a panKIT profile in patients at the targeted clinical exposure, with a potential to beat Pfizer, Inc's PFE Sutent (sunitinib), the current standard of care, in a head-to-head 2L GIST trial on the regulatory endpoint of progression-free survival (PFS).
Price Action: THRX shares are up 7.01% at $7.87 on the last check Thursday.

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