Infinity Pharma an attractive M&A target - Truist Securities

Infinity Pharmaceuticals

31/03/2022 14:00

** Shares of drug developer  INFI.O  rise 2.7% to $1.16
premarket, set to extend a 13.5% surge on Wed following
full-year results  urn:newsml:reuters.com:*:nL3N2VX85S
    ** But at least three brokerages cut PTs; Truist Securities
slashes PT by over 60% to $4, which still represents a tripling
from stock's last close  
    ** Median PT is $7.25 - Refinitiv data 
    ** Truist says base case scenario assumes co will have to
proceed to partnership deal which could see 50-50 sharing of
profits, reducing co's possibility of success and discouraging
investors 
    ** "INFI, which has a de-risked asset and trading at cash
makes for an attractive M&A target" - Truist; brokerage expects
deal announcement to be made soon given co's cash in hand and
burn rate
    ** INFI's main drug candidate is eganelisib - an oral,
once-daily, experimental drug being investigated as a possible
treatment for cancer
    ** "Due to limited resources, Infinity is focusing
eganelisib development in triple negative breast cancer, rather
than metastatic urothelial cancer. Thus we are removing $432
million in value for this indication" - Piper Sandler 
    ** INFI set to extends gains to third consecutive session;
down ~50% YTD, as of last close 

 (Reporting by Susan Mathew)
 ((susan.mathew@thomsonreuters.com))