HC Wainwright: G1 Therapeutics Is Targeting 'Potential Blockbuster' Oncology Markets

G1 Therapeutics Inc GTHX, a clinical-stage biopharmaceutical company that focuses on novel oncology therapeutics, boasts three drug candidates that address "potential blockbuster" markets, according to H.C. Wainwright.

The Analyst

H.C. Wainwright's Edward White initiated coverage of G1 Therapeutics' stock with a Buy rating and $61 price target.

The Thesis

G1 Therapeutics is positioning itself to help the approximate 1 million patients annually in the U.S. who undergo chemotherapy with its therapies, White said in a Tuesday initiation note.

Trilaciclib is intended to improve patient outcomes by maximizing the effects of a chemotherapy treatment while simultaneously minimizing myelosuppression and immunosuppression, White said. Investors could be overlooking the possibility of trilaciclib becoming part of the standard of care for patients with CDK4/6-independent tumors, including small cell lung cancer and triple-negative breast cancer, he said. 

G1's second drug in development, G1T38, could become a best-in-class treatment versus existing treatments such as ibrance, kisqali and verzenio, the analyst said. The company's third drug, G1T48, is an oral selective estrogen receptor degrader that could perform well against existing therapies like faslodex, he said. 

G1 could even combine G1T48 with G1T38 to create a wholly owned, all-oral SERD and CDK4/6 inhibitor combination regime that would hold a commercialization advantage, White said. That outcome would have a size and scale investors are "not fully understanding," he said. 

Price Action

G1 Therapeutics shares were trading lower by 3.6 percent Tuesday afternoon at $48.26. 

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