Pyxis Oncology's Cancer Drug Platform Shows Potential, Analyst Sees Over 190% Upside

Stephens has initiated coverage on Pyxis Oncology Inc PYXS, highlighting the company’s technology platform aimed at developing next-gen antibody-drug conjugates (ADCs) with enhanced potency, stability, and tolerability.

The analyst points out that Pyxis’ lead drug, PYX-201, is an ADC that targets Extradomain-B Fibronectin (EDB+FN) in the tumor stroma and releases a toxic payload into the tumor microenvironment.

The analyst has initiated with an Overweight rating with a price target of $13.

Stephens notes that the ADC technology has shown strong potential, with recent successes boosting confidence in its market growth.

Also Read: Pyxis Oncology M&A Spotlight Signals Potential Growth Amidst Competitive ADC Landscape: Analyst

Pyxis has demonstrated that proteases and the acidic conditions of the tumor stroma can break down the payload linker, similar to the process when the drug is absorbed by cells.

The company is about to announce results from the first phase of its human clinical trial for PYX-201, which treats various solid tumors. This update, expected this month, could significantly impact the stock price.

The analyst writes there’s a good chance of positive results, including partial or complete responses, along with a favorable safety profile at doses higher than 3.6 mg/kg.

As of June 30, 2024, Pyxis Oncology had cash and cash equivalents, including restricted cash and short-term investments of $157.2 million.

The company says that its current cash, cash equivalents, and short-term investments will be sufficient to fund its operations into the second half of 2026.

Price Action: PYXS stock is 12.2% at $4.42 at last check Friday.

Image by PDPics from Pixabay

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