Cancer-Focused Janux Therapeutics Platform Has 'Tremendous Opportunity': Analyst

Cantor Fitzgerald initiated coverage on Janux Therapeutics Inc JANX, citing the company’s TRACTr/TRACir platform to target numerous tumor antigens and cancer types.

The analyst suggests that although the model primarily relies on JANX007, the company’s product for metastatic castration-resistant prostate cancer (mCRPC), which can significantly increase the current valuation, and Cantor incorporates a conservative estimate of $350 million for the technological value of JANX’s platform due to its versatile and robust potential.

Related: Cancer-Focused Janux Therapeutics Stock Remains Undervalued Despite Price Surge After Study Data: Analyst.

Cantor says clinical data from lead asset JANX007 is early but compelling, setting the stage for the rest of the portfolio and platform. 

Cantor initiates with an overweight rating and a price target of $100.

“As a leader in this emerging and now highly compelling T-cell engagers (TCE) space, we see tremendous opportunity ahead for JANX – the potential for multiple best-in-class blockbuster products, lucrative partnerships, and likely a significant degree of strategic interest,” Cantor analyst writes.

Cantor analyst estimates JANX007 could be a product with peak US sales of $1.3 billion by 2031, assuming a launch in 2029.

Analyst Josh Schimmer notes that JANX007 faces some intense competition and will need to maintain a compelling profile and/or combine well with other therapies to thrive commercially.

Janux, according to Cantor’s notes, is in a strong financial position, boasting a cash balance of approximately $344 million in 2023. 

Additionally, the company announced a capital raise of $296.5 million in February 2024. 

This funding is intended to support the advancement of JANX007 and other ongoing programs, such as JANX008, a preclinical TROP2 TCE, and their TRACIr platform. 

Furthermore, Janux aims to utilize its modular platform to develop optimized TCEs targeting various objectives.

Price Action: JANX shares are up 4.31% at $40.30 on the last check Wednesday.