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RenovoRx has a big upside, says Roth Capital

Roth Capital Partners analyst Scott R. Henry says he’s encouraged by new clinical results from biopharm company RenovoRx Inc (Renovo Stock Quote, Charts, News, Analysts, Financials NASDAQ:RNXT). Henry provided an update to clients on the company in a Friday note where he reiterated a “Buy” rating on the stock and 12-month price target of US$11.00.

Los Altos, California-based Renovo is a clinical stage biopharmaceutical firm focused on developing therapies for treating solid tumours, with lead candidate RenovoGem, an FDA-approved chemotherapy delivered by the company’s proprietary delivery system and using pressure-mediated drug delivery across the arterial wall to bathe tumour tissue in chemotherapy via RenovoTAMP. RenovoGem is currently in Phase 3 trials for locally advanced pancreatic cancer.

The company announced on Thursday initial results from a pharmacokinetic (PK) substudy as part of the Phase 3 trial, saying the substudy “provides clinical support” that RenovoTAMP may increase local drug delivery and concentration at the tumour site while decreasing side effects compared to systemic intravenous (IV) delivery, the current standard of care. RenovoRx also announced three other abstracts, all part of a presentation for the ASCO GI Symposium.

“This substudy data, and the additional three studies to be presented at ASCO GI, enhance the strong clinical momentum of our therapy platform as we prepare for our most significant milestone to date: the initial interim analysis for our randomized phase III TIGeR-PaC trial.” said Shaun Bagai, CEO of RenovoRx.

The PK study looked at a sample of Locally Advanced Pancreatic Cancer (LAPC) in 13 patients participating in the TIGeR-PaC study and demonstrated an average of more than 50 per cent reduction in systemic drug exposure with IA delivery of gemcitabine using RenovoTAMP versus IV administration. Five TIGeR-PaC clinical sites participated in the substudy.

Looking at the results, Henry said they suggest improved quality of life by reducing systemic exposure to chemotherapy while also potentially providing the opportunity to dose longer and/or stronger. The analyst said the results also suggest, theoretically, that having lower systemic gemcitabine levels in RenovoTAMP subjects “could indicate greater local exposure at the tumour site (all else being equal),” Henry said.

“This substudy of PK patients in the TIG-eR-PaC trial supports the hypothesis that dosing locally versus systemically could result in fewer side effects and/or improved efficacy. However, investors should recognize that this is not a substitute for the final clinical results, which must also reach statistical significance. The initial interim analysis is targeted for 1Q23,” Henry wrote.

At press time, Henry’s US$11.00 target represented a projected return of 186 per cent.

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