In an August 5, 2022 research note, H.C. Wainwright & Co. LLC Analyst Joseph Pantginis, Ph.D. advised that Precision Oncology company Nuvectis Pharma Inc. (NVCT:NASDAQ) provides "significant upside potential" due to the firm's ability to advance its clinical development programs quickly and its actions to look for opportunities in markets outside of the U.S.
The analyst indicated that Nuvectis Pharma announced Q2/22 financial results showing a net loss of $0.28 per share, which was slightly less than H.C. Wainwright's forecasts for earnings per share (EPS) of ($0.27) and consensus estimates for EPS of ($0.23).
According to the analyst, the company remains well funded with pro forma cash of around $30 million from an August 2022 equity raise, and Nuvectis' management believes that it is fully funded for two plus years into H2/24.
H.C. Wainwright noted that the company remains focused on advancing its precision oncology programs.
The firm is now conducting a Phase 1a clinical trial of NXP-800, a heat shock factor 1 (HSF1) pathway inhibitor, in individuals with advanced cancers. Specifically, NXP800 is being evaluated for the treatment of ovarian clear cell carcinoma and endometrioid ovarian carcinoma, and other ARID1A-mutant tumors. The Phase 1a portion of the study is centered on dose-escalation, and the company is planning to advance into the Phase 1b dose expansion arm in Q1/23.
The report mentioned that The U.S. Food and Drug Administration (FDA) recently approved an IND request for NXP-800, and the company is now enrolling patients for trials in the U.S. and U.K. H.C. Wainwright advised that along with the company, it believes that preclinical data provides validation of NXP-800's intended mechanism of action (MoA) and demonstrates evidence of how the molecule acts to inhibit and curb tumor growth.
In addition, the firm is carrying out IND-enabling studies for NXP-900, a dual SRC/YES1 inhibitor. It is anticipated that this work will be completed by the end of FY/22. The analyst added that "preclinical data highlight potential for NXP-900 in Group 4 Medulloblastoma."
H.C. Wainwright & Co. stated it is excited about the pipeline development path that Nuvectis is taking as it presents investors with a chance to participate in a ground-floor opportunity within the precision oncology arena.
According to the report from H.C. Wainwright & Co., "NXP800 was licensed in May 2021 from CRT Pioneer Fund in the U.K., and NXP900 was licensed in August 2021 from the University of Edinburgh."
Looking forward, the research firm advised that two key areas worth watching will be the data observed in a recently begun Phase 1a study of NXP800 in advanced solid tumors and any new preclinical data and IND filing for NXP900.
Nuvectis Pharma is a biopharmaceutical firm based in Fort Lee, N.J.; the concentrates its work on developing innovative precision medicines for use in treating cancer. The company's leading oncology programs include NXP800, a licensed oral small molecule inhibitor of the HSF1 pathway that is presently being evaluated as a treatment for ovarian clear cell carcinoma and advanced stage endometrioid ovarian cancer, and NXP900, a licensed oral small molecule SRC/YES1 kinase inhibitor currently be studied to address solid tumors.
H.C. Wainwright & Co. LLC advised that it has a Buy rating and a $21.00 price target for Nuvectis Pharma Inc. The research firm noted that it employed a clinical net present value (NPV) valuation model with several variable assumptions that could affect a drug's profile. H.C. Wainwright said its model only considers opportunities for NXP800 and NXP900 in the U.S. and risk-adjusted forecasts for approved indications under a biomarker-driven strategy.
Nuvectis Pharma Inc. shares trade on the Nasdaq Stock Exchange under the symbol "NVCT" and last closed for trading at $8.71 on Friday, August 12, 2022. The company has a market cap of about $110.77 million, with around 12.7 million shares outstanding.
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Disclosures for H.C.Wainwright & Co., Nuvectis Pharma Inc, August 5, 2022
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Joseph Pantginis, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Nuvectis Pharma, Inc. (including, without limitation, any option, right, warrant, future, long or short position). As of July 31, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Nuvectis Pharma, Inc..
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report. The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The firm or its affiliates received compensation from Nuvectis Pharma, Inc. for non-investment banking services in the previous 12 months.
The Firm or its affiliates did receive compensation from Nuvectis Pharma, Inc. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Nuvectis Pharma, Inc. during the past
12 months.
The Firm does not make a market in Nuvectis Pharma, Inc. as of the date of this research report.
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