![Stifel cuts ALX Oncology stock, sees limited upside for 'evorpacept'](https://i-invdn-com.investing.com/news/LYNXMPEA6606G_L.jpg)
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On Friday, Stifel, a monetary providers agency, adjusted its stance on ALX Oncology shares, downgrading the biopharmaceutical firm from a “Buy” to a “Hold” score. The agency additionally elevated the worth goal for ALX Oncology (NASDAQ:ALXO) to $14.00, up from the earlier goal of $10.00. The revision comes because the analyst assesses the market potential and improvement trajectory of ALX Oncology’s evorpacept, a CD47 blocker at the moment in improvement.
The analyst from Stifel famous that the present valuation of ALX Oncology displays the market alternative for evorpacept in treating HER2+ gastric most cancers. A pivotal research for this indication is predicted to start within the fourth quarter of 2024, contingent on optimistic knowledge replication anticipated round June or July.
Regardless of the upcoming initiation of the pivotal research, the analyst expressed a conservative outlook, citing the marketplace for this particular most cancers remedy as probably lower than $100 million.
The agency acknowledged that the downgrade occurred simply earlier than ALX Oncology is ready to expertise a collection of early-stage knowledge catalysts. These catalysts will take a look at the “optionality” of CD47 in varied therapies, together with blood cancers and mixture therapies with antibody-drug conjugates (ADCs) and checkpoint inhibitors.
Nevertheless, the analyst expressed reservations concerning the proof supporting optimistic outcomes, notably in head and neck squamous cell carcinoma (HNSCC), and questioned the feasibility of improvement pathways for mixture therapies.
Stifel additionally thought-about the broader context of strategic curiosity in CD47 blockers, stating the challenges posed by important worth declines in historic offers involving CD47 property and the abundance of CD47/SIRPα property already current in pharmaceutical pipelines.
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