Black Diamond Therapeutics may gain 106%. Why’s that?
Black Diamond is a drug company, which is researching cancer treatments. It focuses on genetically defined cancers with limited treatment options. The company uses mutation-allostery-pharmacology and a proprietary tech platform to develop small molecule therapies. After developing, those therapies will target specific mutations in a tumour agnostic manner.
The company’s pipeline currently features two drug candidates. BDTX-189 is the lead candidate, and it is in a Phase 1 study. Black Diamond scheduled that phase for completion in the first half of this year. Thus far, BDTX-189 shows promise in combatting allosteric HER2 and EGFR tumours, and it simultaneously minimises potential toxic effects. Considering that most current cancer treatments come with severe side effects, that point could turn out to be key for success.
Black Diamond is already enrolling patients in the BDTX-189 study while preparing for moving to Phase 2 later in 2021. The MasterKey-01 dose-escalation study not only has progressed well but also defined a maximum tolerated dose within the company’s estimates.
Canaccord’s analyst Arlinda Lee stated that they view Black Diamond’s unique approach of identifying allosteric driver mutations and tumour-agnostic development strategy, along with targeting families of mutations with a single small molecule inhibitor, as attractive.
As a result, Lee gave the stock a Buy rating, putting a $50 price target on the shares. Investors could gain 106% with this price target in a year.
What about Cortexyme stock?
Cortexyme is a clinical-stage drug developer. It researches treatments for degenerative diseases like Alzheimer’s.
Cortexyme’s main attraction is its GAIN study. That is a Phase 2/3 study, which features drug candidate COR388 – also called atuzaginstat. The company uses that small-molecule lysine gingipain inhibitor as Alzheimer’s treatment.
This study follows 643 patients in total and the interim analysis, based at the record of 300 of those patients, concluded with positive results in December. However, it also recommended the full 1-year study to continue as planned for final analysis.
Meanwhile, investors’ hope that the trial would stop earlier dashed and in reaction, the stock tumbled down. Canaccord analyst Sumat Kulkarni thinks that now is an excellent time to buy this stock, while the price skyrockets again.
Kulkarni rated the stock as a Buy and set the price target at $75. This figure suggests a 108% gain for investors in the coming year.
It seems, Wall Street analysts agree with Kulkarni. During the past three months, “buy” ratings have outnumbered “sells” four-to-one on this stock. On Wall Street, the average target price is $96 though, with 166% gain potential over the next year.
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