Bicara Therapeutics Inc.: Promising Clinical Trials and Stable Financial Outlook Support Buy Rating

Analyst Robert Burns from H.C. Wainwright reiterated a Buy rating on Bicara Therapeutics Inc. (BCAX – Research Report) and decreased the price target to $41.00 from $44.00.

Robert Burns has given his Buy rating due to a combination of factors related to Bicara Therapeutics Inc.’s promising clinical trial results and financial position. The company is currently focusing on the upcoming data update at ASCO, which is expected to provide updated clinical results from their ongoing Phase 1/1b study of ficerafusp alfa in combination with Keytruda for head and neck squamous cell carcinoma. The previous results showed a significantly higher overall response rate and complete response rate compared to Keytruda alone or with chemotherapy, particularly in the HPV-negative subgroup.
Despite reporting a wider-than-expected net loss for the first quarter of 2025, Bicara’s financial resources are deemed sufficient to fund operations well into the first half of 2029, providing a stable financial outlook. The valuation approach used by Burns includes a discounted cash flow model with a 10% discount rate and a 45% probability of approval for ficerafusp alfa, leading to a market value estimate of $2.26 billion. This valuation supports the 12-month price target of $41 per share, despite the inherent risks such as potential negative clinical outcomes and competitive pressures.