Shares of Curis Inc. (CRIS, +4.23%) showed a premarket surge of nearly 6% on Friday as Truist Securities analysts initiated coverage of the innovative biotech company with a buy rating.
The Next Pharmacyclics
In a recent report, Truist analysts, led by Robyn Karnauskas, boldly claimed that Curis could be the "next Pharmacyclics." We all remember how Pharmacyclics, the creator of the groundbreaking cancer drug Imbruvica, was acquired by AbbVie Inc. (ABBV, +0.49%) in 2015 for a staggering $21 billion.
Targeting Chronic Lymphocytic Leukemia
Curis' lead drug candidate, emavusertib, holds immense potential for chronic lymphocytic leukemia. According to the Truist analysts, upcoming clinical trial data expected next year could position Curis as an attractive take-out target, given big pharma's vested interests in early drug development.
Expanding into Lymphoma Treatment
In addition to chronic lymphocytic leukemia, Curis is diligently working on developing emavusertib for a rare form of non-Hodgkin lymphoma that currently lacks effective treatment options. To unveil the latest advancements and clinical trial data in this area, the company will be presenting at the American Society of Hematology’s annual meeting in early December.
Unveiling the Undervalued Potential
The Truist analysts emphasized that Curis' shares are extremely undervalued. However, they did address a significant risk regarding the companys cash level. As of September 30, Curis reported $68.5 million in cash and investments, which it believes will sufficiently fund its operations until 2025.
Setting the Price Target
With a comprehensive evaluation of Curis' potential, the analysts confidently set a price target for the company's stock at $26. Although Curis' shares have experienced a decline of 46% year to date, it is important to note that the S&P 500 (SPX) has concurrently climbed by 17%.
Curis Inc. is undoubtedly an exciting player in the biotech industry with its innovative cancer therapies and groundbreaking research. Its upcoming milestones and potential growth make it a company worth keeping an eye on.
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