Fusion Pharmaceuticals is Future Pillar of Cancer Treatment: Analyst

Raymond James has initiated coverage on Fusion Pharmaceuticals Inc FUSN with an Outperform rating and a price target of $13.

The analyst notes Fusion's platform to design, manufacture, clinical development, and commercialize next-generation radiopharmaceutical drugs, focusing on targeted alpha therapies.

Also Read: Fusion Pharma Raises $60M To Fund Acquisition Of Prostate Cancer-Targeted Radiopharmaceutical.

The analyst notes that radiotherapeutics are potentially on the verge of inflection in the broader oncology landscape and realistically have the potential to become a crucial new pillar of cancer treatment.

Radiopharma has already chalked up several clinical and commercial wins, including Bayer AG's BAYRY Xofigo and Novartis AG's NVS Lutathera and Pluvicto.

Pluvicto is among the highest-profile radiotherapeutic, with ~$1 billion in sales expected during 2023. The analyst says it is growing so big that the Pluvicto-refractory mCRPC population could drive a $500 million/year peak sales opportunity for Fusion.

FUSN has established a deep bench of drug design and preclinical R&D talent, a rich and diverse clinical pipeline, and in-house, commercial-scale manufacturing capabilities backed with a multi-asset partnership with AstraZeneca plc AZN.

The analyst writes that the company's TATs can improve on the successes of currently available cancer therapies, including modern radioligands, and should find application across a very wide range of targets.

Price Action: FUSN shares are down 0.69% at $4.34 on the last check Friday.