Piper Sandler sees Rain Therapeutics' lead cancer drug succeed in trial; ups PT

Rain Oncology

20/01/2023 16:33

** Rain Therapeutics Inc's shares  RAIN.O  rise 9.2% to $9.6
    ** Brokerage Piper Sandler raises PT on RAIN to $15 from $12
on optimism over its lead cancer drug milademetan, and sees its
late-stage study as well-positioned for a positive outcome 
    ** The drug is being tested in liposarcoma indication, a
rare type of cancer which occurs in fat cells; trial data
readout is expected in Q1 of 2023
    ** Adds that performance of chemotherapy control arm in
trial presents the most meaningful risk but believes the study
will demonstrate statistical significance on the primary
progression-free-survival (PFS) goal
    ** Says the addressable market for the drug is modest,
estimating ~1,500 patients in U.S./year, but sees treatment
duration and potential orphan oncology pricing to support a
meaningful revenue opportunity
    ** Following which, brokerage estimates potential U.S. sales
of more than $400 mln for the drug in 2030, within the initial
label indication
    ** All 9 brokerages covering the stock rate it "buy" or
higher; median PT is $16 - Refinitiv data
    ** Stock of the cancer treatment-focused co fell 37.9% in
the past 12 months 
 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))