Citigroup Inc (NYSE: C) analyst Yigal Nochomovitz has a more bullish outlook for Arrivent Biopharma Inc (NASDAQ: AVBP) after the biotech company released positive clinical trial data on its lung cancer treatment drug.
Early this week, he upped his share target by US$4 to US$40. Stock is currently trading for US$22.80 on the Nasdaq.
Most notably, ArriVent just reported that firmonertinib, a therapeutic used for a mutated variety of non-small cell lung cancer (NSCLC), enabled 16-month progression free survival among patients in a Phase 1B study.
“We believe the interim median progression free survival of 16 months observed in the ‘FURTHER’ study is clinically meaningful,” said research and development lead, Stuart Lutzker, “and together with the compelling CNS activity and favourable safety profile underscore the potential of firmonertinib to address unmet needs across patients with P-loop alpha-C helix-compressing [PACC] mutations as a once daily oral, chemo-free monotherapy.”
In 2021, the drug was approved as a first-line treatment in China for different varieties of NSCLC mutations. It has also received breakthrough designation from the FDA for others.
Now, building on the positive findings, ArriVent plans to jump right into a Phase 3 study on the treatment later this year. The first patients are expected to be enrolled in the immediate future.
ArriVent just finished hosting a virtual investor event to discuss the future outlook for the drug and the latest data.
Other notable analysts covering the company’s progression include Corinne Johnson from Goldman Sachs Group Inc (NYSE: GS) and Kelly Shi from Jefferies Financial Group Inc (NYSE: JEF).
Read more: Breath Diagnostics opens Respiratory Innovation Summit with captivating presentation
R&D costs have been hefty in 2025
Despite Nochomovitz’s positive outlook, the drug developer reported a net loss in Q1 270 per cent greater than the first quarter of 2024 at US$64.4 million. Research and development costs were 260 per cent higher last quarter than they were during the three-month period last year.
The company currently has enough cash to fund its activities into mid-2026 at US$205.5 million, according to a release about financial results on May 12.
ArriVent is also developing a group of drugs used to treat solid tumours, but their development is not as advanced as firmonertinib.
Aclaris Therapeutics Inc (NASDAQ: ACRS) (FRA: 8AT), Exelixis Inc (NASDAQ: EXEL) (FRA: EX9) and Puma Biotechnology Inc (NASDAQ: PBYI) are notable competitors.
Read more: Breath Diagnostics now offering a compelling investment opportunity
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