Key insights
- Goldman Sachs upgraded ORIC Pharmaceuticals to Buy with a $15 price target, citing promising clinical data for rinzimetostat in prostate cancer and potential peak sales of $2.6 billion. Pfizer's MEVPRO-1 read-out is viewed as a key catalyst. ORIC also advances enozertinib for lung cancer, with peak sales estimated at $700 million. While not profitable this year, ORIC has a strong cash position.
Investing.com - Goldman Sachs upgraded ORIC Pharmaceuticals (NASDAQ:ORIC) to Buy from Early-Stage Biotech and set a price target of $15.00. The stock currently trades at $8.34, giving the company a market cap of $863 million, and has delivered a 76% return over the past year despite recent weakness.
The upgrade follows clinical data showing a potentially differentiated profile for rinzimetostat in prostate cancer, with Goldman Sachs estimating $2.6 billion in peak sales. The firm cited key de-risking Phase 3 data for the class expected in MEVPRO-1 in 2026. While InvestingPro Tips note that analysts do not anticipate the company will be profitable this year, ORIC holds more cash than debt on its balance sheet, providing financial flexibility for its clinical programs.
ORIC recently presented Phase 1b dose optimization data for rinzimetostat at the registrational dose, delivering competitive efficacy versus benchmarks and a differentiated safety profile. Updated results are anticipated in the second half of 2026.
Goldman Sachs views Pfizer’s MEVPRO-1 read-out as the key clinical catalyst for the class near-term. The firm conducted a proprietary statistical analysis and sees a relatively high probability of success under most likely bull and base case assumptions, noting 30-40% upside to its current valuation of ORIC based on positive results.
ORIC continues to advance its EGFR inhibitor, enozertinib, across EGFR mutant lung cancer, with a clinical and program update anticipated mid-year. Goldman Sachs estimates $700 million in peak sales for this program. The analyst consensus remains at Strong Buy, though InvestingPro data suggests the stock is slightly overvalued based on its Fair Value analysis.
In other recent news, ORIC Pharmaceuticals presented preclinical data on its prostate cancer drug candidate, rinzimetostat, at the American Association for Cancer Research Annual Meeting. The data demonstrated early and sustained PRC2 activity in prostate cancer development. The company also released early-stage trial results for rinzimetostat in combination with darolutamide, showing a 33% confirmed PSA50 response rate among 18 patients with metastatic castration-resistant prostate cancer. Despite these findings, the trial results matched but did not exceed those of a competing therapy. H.C. Wainwright reiterated a Buy rating on ORIC Pharmaceuticals, maintaining a price target of $25.00. Wolfe Research kept a Peerperform rating, while Cantor Fitzgerald reiterated an Overweight rating, addressing investor concerns about treatment discontinuation. These recent developments highlight ongoing efforts and challenges in ORIC’s prostate cancer treatment research.
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