Adlai Nortye initiated with a Buy at JonesResearch

JonesResearch analyst Boris Peaker initiated coverage of Adlai Nortye (ANL) with a Buy rating and $22 price target. Adlai had a recent recapitalization and refocus on pan-RAS(ON) inhibitors, which includes small molecule drug AN9025 as well as an ADC with a pan-RAS(ON) inhibitor payload, AN4035, the analyst tells investors. While competitive pressures from Revolution Medicines (RVMD) and Erasca (ERAS) are the firm’s “key concern” as both programs are several years ahead of Adlai, it believes the market will be wide enough for Adlai to “find strategic pockets to fill with their potentially best-in-class therapies,” the analyst added.