Janux Therapeutics' Stock Is Currently Undervalued, Analyst Highlights Prostate Cancer Candidate Potential

Janux Therapeutics Inc JANX announced interim Phase 1 clinical data for PSMA-TRACTr JANX007 in adult subjects with metastatic castration-resistant prostate cancer (mCRPC).

The data from eight patients from the first three cohorts of the dose escalation portion of Phase 1a clinical trial, as of June 28, show that JANX007 has been generally well tolerated, with no dose-limiting toxicities. 

JANX007 has been dosed at 300µg flat dose, above the projected maximum tolerable dose of the parental T cell engagers. 

JANX007 showed clinical activity at both 100µg and 300µg flat doses and yielded the best overall prostate-specific antigens (PSA) reductions between 31% and 67% in four of the five patients who received a flat dose. 

Grade 1 or 2 cytokine release syndrome (CRS) was observed in patients who demonstrated PSA reductions, suggesting cytokine release resulting from antitumor activity was associated with CRS. 

No Grade 3 CRS has been observed.

Concurrently, Janux Therapeutics priced an underwritten offering of 4,153,717 shares of its common stock and pre-funded warrants to purchase 583,483 shares at $12.46/share and $12.459/pre-funded warrant, with gross proceeds of approximately $60 million.

William Blair notes that Janux shares are currently undervalued based on the potential of the company’s TRACTr platform and its ability to generate conditionally active multispecific molecules. 

Although the Janux TRACTr platform is still in the early stages of development, the analyst says preclinical data highly support the improved therapeutic window of the TRACTr bispecific while maintaining similar antitumor activity compared to unmasked TCEs. 

The analyst says the TRACTr platform will allow Janux to continue to generate internal pipeline programs while also providing a mechanism for business development activity, which could further extend the company’s cash runway.

Price Action: JANX shares are down 0.48% at $12.40 on the last check Monday.