Point Biopharma is still undervalued, Raymond James says

The coming year is going to be a busy one for Point Biopharma (Point Biopharma Stock Quote, Chart, News, Analysts, Financials Nasdaq:PNT), says Raymond James analyst Rahul Sarugaser.

In a research update to clients August 28, the analyst reviewed upcoming catalysts for the company and maintained his “Outperform 2” rating and one-year price target of $13.00 on PNT.

Sarugaser noted the developments that he will be looking forward to as 2023 turns to 2024.

“We highlight that the next 4-12 months will hold a succession of key data updates from PNT, including Phase 3 top-line data readout for PNT2002 in mCRPC (4Q23), IND submission and Phase 1/2 trial initiation for PNT2001—an 225Ac-bearing asset—in prostate cancer (4Q23/1Q24, resp.), and full Phase 1 data for PNT2004 in FAP-α+ tumors (1H24),” he said. “Notably, Novartis will publish complete data from its PSMAfore trial of Pluvicto (mCRPC, pre-chemo) during 4Q23 as well, making for a high-action year-end in the mCRPC-focused radioligand space. PNT has ~$423 mln in cash & STI and incurred ~$36 mln in OpEx during 2Q23.”

On August 14, Point released its Q2, 2023 results, posting a net loss of $25.4 million.

“This quarter, we began to reveal our strategy to realize one of the great opportunities presented by radioligands – the use of patient imaging to evaluate how candidate ligands perform in humans before committing substantial time and resources required to run an interventional trial,” CEO Joe McCann said. “Imaging can quickly reveal ligand properties and expression of a molecular target. By pairing ligand properties with complementary isotope properties, the potential for therapeutic effect can be efficiently evaluated to optimize clinical development decisions. We are committed to leveraging these theranostic principles and making data-driven program investment decisions in pursuit of accelerated development pathways for new targeted radioligand therapies.”

The analyst says investors should keep an eye on a slight change in focus that could pay off for PNT.

“While the PNT2002 Phase 3 read-out is, indeed, the main focus of investors’ attention (line of sight on $1.5 bln in milestones, plus royalties, plus manufacturing profits: we get it), we also highlight that PNT is shifting the focus, in earnest, to its pipeline programs, touting two assets at the early and late stages of Phase I studies (PNT2004 and PNT2001, resp.), preclinical work forecasting further expansion into targeted alpha therapy, and stated aim to launch 5 new clinical programs by the end of 2028 (incl. 2 new programs by the CYE24,” he added.