With a series of high-profile acquisitions happening in the radiopharma sector, Raymond James analyst Rahul Sarugaser has raised his price target and rating on Fusion Pharmaceuticals (Fusion Pharmaceuticals Stock Quote, Chart, News, Analysts Financials NASDAQ:FUSN).
The analyst says things are really happening in the space.
“Following our fireside chat with FUSN’s CEO, Dr. John Valliant, we highlighted that the targeted oncology market is en fuego, pointing specifically to a flurry of recent acquisitions of ADC developers (ie. PFE/SGEN, ABBV/IMGN, [Daiichi/MRK collab.]),” Sarugaser said. “Given that many pharma companies missed the ADC boat over the last 5 years, they are beginning to see that being competitive in targeted oncology will require radiopharma programs in their portfolio. To this end, and in light of recent transactions between LLY/PNT and BMY/RYZB, we anticipate investor sentiment will follow Pharma’s already-evident enthusiasm for radiopharmaceuticals.”
In a research update to clients December 27, the analyst upgraded Fusion Pharma from “Outperform 2” to “Strong Buy 1” and raised his price target on the stock from $12.00 to $15.00, implying a return of 88.2 per cent at the time of publication.
“FUSN is among the most mature biotech companies dedicated solely to the development of therapeutic radiopharmaceuticals (targeted alpha therapies, more specifically), having under its umbrella an advanced Ph2 asset, multiple Ph1 assets (including AZN-partnered programs), plus an established, redundant radiopharma manufacturing supply chain; we expect current enthusiasm for radiopharma platforms to drive FUSN’s market value well past the +$1 bln mark. Should Pharma make a move on FUSN, we expect a bid would come at a significant premium,” the analyst concluded.
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