Bicycle Therapeutics' Lead Cancer Candidate's Has High-Opportunity, Analyst Initiates With Bullish Tone

RBC Capital initiated coverage on Bicycle Therapeutics PLC BCYC, noting an advantage in oncology and beyond.

The analyst writes the company’s lead program, Zelenectide pevedotin (zele, formerly BT8009), shows potential to compete in metastatic urothelial cancer (mUC) due to similar objective response rates and fewer adverse events compared to Pfizer Inc’s PFE Seagen Inc. drug, Padcev.

The improved safety profile of Zelenectide could result in greater antitumor durability, a key differentiator from Padcev.

The analyst sees zele with a potential high-opportunity Nectin-4 conjugate for solid tumors, with an estimated ~$2 billion at peak global sales in 2033.

RBC writes, “Commercialization opportunities in non-mUC indications are likely less competitive and offer additional upside to zele.”

The analyst initiates with an Outperform rating and a price target of $35.

The RBC Capital analyst views the regulatory path for Zele as de-risked following FDA alignment on the Duravelo-2 trial. RBC’s proprietary oncologist survey highlights strong demand for a safer Nectin-4 drug conjugate.

The analyst also notes Zele’s potential therapeutic value in additional solid tumor indications, such as triple-negative breast cancer (TNBC) and non-small cell lung cancer (NSCLC), which Padcev has yet to address.

The analyst highlights the strong potential of Bicycle Therapeutics’ pipeline, which includes two additional clinical-stage candidates. Early signs of activity and safety indicate promise for both candidates in treating solid tumors.

The Bicycle platform has been proven through clinical data from its internal pipeline and various external partnerships, generating over $200 million in non-dilutive capital. Future value creation is anticipated from next-generation Bicycle Toxin Conjugates (BTCs), radiopharmaceutical applications, and expansion into areas beyond oncology.

As of June 30, 2024, cash and cash equivalents were $961.4 million, which is expected to provide a cash runway into the second half of 2027.

Price Action: BCYC stock is up 1.27% at $20.69 at the last check on Friday.

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