Buy Rating Affirmed for NextCure Amid Promising Oncology Treatment Prospects and Solid Financials

Analyst Gil Blum of Needham maintained a Buy rating on NextCure (NXTC – Research Report), retaining the price target of $4.00.

Gil Blum has given his Buy rating due to a combination of factors that suggest NextCure’s stock has strong potential for growth. The anticipation of updated Phase Ib study results for NC410 in combination with pembrolizumab in patients with colorectal cancer (CRC) at the upcoming ASCO event is a key driver for optimism. In a preliminary study involving 19 patients, the combination therapy showed a disease control rate (DCR) of 47%, which included two partial responses, and a median progression-free survival (mPFS) of 8.1 months. This is particularly notable because the MSS/MSI low CRC is typically less responsive to immunotherapy, indicating that NC410 could be an effective treatment option for this challenging patient population.

Furthermore, initial results in ovarian cancer patients have been promising, with an objective response rate (ORR) of 43% in a small sample of seven patients. This suggests that NC410 has broader applicability across different tumor types. With NextCure’s financial position being solid, boasting $96 million in cash and a projected funding runway into the second half of 2026, the company appears to be on a secure footing for continued development. The planned IND submission for their LNCB74 program, a novel B7-H4 antibody-drug conjugate, by the end of 2024 further underlines NextCure’s potential for future growth, justifying the Buy rating and the $4 target price set by Gil Blum.

In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $8.00 price target.

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NextCure (NXTC) Company Description:

NextCure, Inc. is a clinical-stage biopharmaceutical company, which engages in discovering and developing novel, first-in-class immunomedicines to treat cancer and other immune-related diseases. Its novel FIND-IO discovery technology identifies targets based on immunomodulatory function and on which the company is building a proprietary pipeline of immunomedicines. The company was founded by Michael S. Richman and Lieping Chen in September 2015 and is headquartered in Beltsville, MD.