RayzeBio Is A New Contender in Radiopharmaceutical Arena, Will Attract Prominent Entities: JP Morgan

JP Morgan has initiated coverage on RayzeBio Inc RYZB, representing a pure-play opportunity in the radiopharmaceutical space.

Analysts Jessica Fye, Nick Lenard, and Na Sun see a relatively de-risked lead asset in RYZ101 currently in phase 3 and an earlier-stage pipeline that could offer further long-term value. 

JP Morgan has initiated with an Outperform rating and a price target of $30.

The analysts see the radiopharmaceuticals space still in its early innings. RayzeBio is poised to advance the field with solid management and potential value-creating milestones over the next 2+ years.

Radiopharmaceutical therapeutics (RPTs) are a differentiated therapeutic modality that delivers targeted radiation to tumors. 

The radiopharmaceutical landscape is marked by notable therapies like Novartis AG's NVS Lutathera and Pluvicto, approved for GEP-NETs and prostate cancer, respectively. 

This evolution is expected to encompass an influx of companies venturing into the radiopharmaceutical domain and a surge in product approvals. 

The planned acquisition of POINT Biopharma by Eli Lilly And Co LLY reinforces this perspective, signaling the potential attraction of more prominent entities to this advancing field.

The integration of larger players is anticipated to spur innovation, diversify the range of offerings, and amplify the sector's growth trajectory, echoing the developmental path witnessed in the ADC space.

Price Action: RYZB shares are down 3.33% at $20.33 on the last check Tuesday.