On Monday, Piper Sandler initiated coverage on Revolution (NASDAQ:RVMD), a biotechnology company, assigning an Overweight rating and setting a shares price target of $43.00. The firm's optimism is based on the potential of Revolution's multi-RAS inhibitor RMC-6236, following encouraging initial Phase I trial results.
The new coverage stems from positive signals regarding the drug's performance in treating pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC). Although progression-free survival (PFS) endpoints are still maturing, early data suggests the potential for favorable outcomes in future Phase III trials.
In their assessment, Piper Sandler noted several factors that support a strong correlation between objective response rates (ORR) and longer PFS and overall survival (OS) within PDAC treatments.
The analyst highlighted that the data indicates a superior performance of RMC-6236 against the current second-line and beyond standard of care for PDAC. This is evidenced by improved PFS outcomes at higher doses and favorable results within the aggregate dose-escalation cohort.
Revolution's RMC-6236 is not only showing promise in PDAC but is also seen as having blockbuster potential for other indications, such as NSCLC and colorectal cancer (CRC). The firm anticipates that the stock will see significant appreciation once mature data for PDAC and NSCLC is released later in the year.
Piper Sandler's price target of $43.00 reflects the firm's confidence in the drug's multi-indication potential and its ability to make a significant impact in the market. The Overweight rating suggests that Revolution's stock is expected to outperform the average return of the stocks that Piper Sandler covers over the next 12 to 18 months.
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