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Elevation Oncology shares rise on new coverage by JPM, target upbeat

EditorEmilio Ghigini
Published 03/01/2024, 04:49 AM
© Reuters.

Thursday - Elevation Oncology (NASDAQ:ELEV) has received a new Market Outperform rating from JMP Securities, accompanied by an optimistic price target of $7.00. The biopharmaceutical company, which focuses on the development of therapies for cancer patients with alterations in single genes, is recognized for its leading clinical development of EO-3021, a novel antibody-drug conjugate (ADC).

The analyst from JMP Securities highlighted EO-3021's potential to stand out in the field of ADCs due to its target, Claudin 18.2, which has been substantially de-risked through previous studies with naked antibodies and results with other ADCs. This suggests that ELEV's EO-3021 could offer a differentiated profile, particularly in terms of tolerability.

ELEV's EO-3021 is advancing in the clinical development pipeline and is poised to potentially address key unmet needs in oncology. The upcoming data on the lead asset EO-3021, expected in the first half of 2024, is anticipated to clarify several critical aspects of the treatment approach. According to the JMP Securities analyst, these findings could significantly enhance the company's valuation by confirming the approach's efficacy and safety.

The biotech firm's strategy is to leverage EO-3021 to target cancers with specific genetic alterations, providing a precision medicine approach that could benefit patients who currently have limited treatment options. The focus on tolerability is especially crucial, as ADCs are often associated with challenging side effects that can limit their use in clinical practice.

Investors have responded positively to the initiation of coverage, with the new price target representing a vote of confidence in Elevation Oncology's potential to deliver on its promises. The forthcoming data release is now a key milestone for the company, with the potential to solidify its position in the competitive oncology market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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