Tango Therapeutics price target raised to $55 from $28 at Leerink

Leerink raised the firm’s price target on Tango Therapeutics (TNGX) to $55 from $28 and keeps an Outperform rating on the shares after the company reported Q1 results and updated the pipeline. The firm notes the stock is under pressure likely from a competitor downgrade, and the departure of two board members, which Leerink views as a unique buying opportunity ahead of a key binary event expected by year-end. The firm spoke to management and are now more positive on the anticipated data release in pancreatic ductal adenocarcinoma for the combination of vopimetostat plus daraxonrasib. The company’s enthusiasm appears to have led to the decision to not initiate a pivotal study evaluating vopimetostat monotherapy in second line pancreatic ductal adenocarcinoma, instead focusing on the firstline pancreatic ductal adenocarcinoma opportunity in combination with RAS(ON) inhibitors. Leerink thinks this strategic shift is a prudent decision, as success in the first line could make subsequent lines of therapy less relevant, and not be a good return on investment.