Fusion's Pharma's Targeted Cancer Therapy Potential Gets This Analyst Bullish, Sees 100% Upside

RBC Capital Markets initiated coverage on Fusion Pharmaceuticals Inc FUSN, saying the radiopharmaceutical industry is a burgeoning area in therapeutics following the green light for Novartis AG's NVS Pluvicto, providing an influx of capital from strategic ventures and new company establishments. 

This validates mergers and acquisitions as major players seek fresh Radiopharmaceutical Therapy (RPT) capabilities to craft distinctive oncology platforms.

RBC analysts note that Fusion is competitively positioned based on its proprietary target alpha therapy platform, diverse pipeline, deep radiopharma pedigree, and established manufacturing expertise, which are key to commercial success. 

The analysts initiated with an Outperform (Speculative Risk) and a price target of $12.

Lead program FPI-2265 has high potential and could be the first-to-market 225AcPSMA agent, capitalizing on an established multi-billion dollar market in metastatic castration-resistant prostate cancer (mCRPC).

With enhanced safety from the proprietary Fast-Clear linker technology and flexible targeting moieties (from small molecule, peptide to antibody backbone), RBC sees potential for Fusion's candidates to help broaden the multibillion-dollar radiopharmaceutical market.

RBC anticipates that an update in Q1 of 2024 regarding the progress of the leading program, FPI-2265, holds significant value as it has the potential to validate the targeted alpha therapy (TAT) platform. 

Additionally, as it stands as the primary driver in model, this milestone could set the stage for increased market appreciation. This assessment suggests an approximate 100% upside potential from the current share levels.

The analyst also notes that AstraZeneca Plc's AZN collaboration on FPI-2068 (EGFRxcMET) adds validation to the platform and enriches the pipeline with bi-specific radiopharma.

Price Action: FUSN shares are up 4.81% at $6.32 on the last check Wednesday.