Analyst Jonathan Chang from Leerink Partners reiterated a Buy rating on Revolution Medicines and keeping the price target at $66.00.
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Jonathan Chang’s rating is based on the promising prospects of Revolution Medicines’ lead drug candidate, daraxonrasib, particularly in the treatment of pancreatic cancer. The ongoing Phase III RASolute 302 study for daraxonrasib in second-line pancreatic ductal adenocarcinoma (PDAC) shows a high probability of success, estimated at 97%. This confidence is bolstered by the expectation of substantial study enrollment completion by 2025 and a data readout by 2026, which could lead to the drug’s approval.
Furthermore, Revolution Medicines plans to expand daraxonrasib’s application into first-line metastatic and adjuvant settings, potentially increasing its market opportunity. The estimated peak worldwide market for daraxonrasib in first and second-line metastatic pancreatic cancer is approximately $7.6 billion. Despite the competitive landscape of RAS pathway drug development, the encouraging clinical data and the significant addressable population of RAS-dependent cancers contribute to a positive long-term outlook for the stock.
According to TipRanks, Chang is an analyst with an average return of -11.0% and a 31.02% success rate. Chang covers the Healthcare sector, focusing on stocks such as Kura Oncology, Zai Lab, and Genmab.
In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $72.00 price target.