The biotechnology firm Chimerix has a high probability of success in its ongoing clinical trial in the treatment of pediatric brain tumors, according to analysts at Baird.
The firm initiated coverage of the North Carolina-based company with an Outperform rating and a $7 price target.
“Chimerix's lead agent is a potential first-in-class agent for the treatment of H3 K27M-mutant glioma,” the analysts wrote. “We see a relatively high (65%) probability of success in the ongoing pivotal trial [and] the cash runway into 2027 extends past expected results from this trial in 2025/2026.”
The trial is a 450-patient randomized placebo-controlled study using overall survival as the primary endpoint. Baird’s evaluation of a high probability of success is based on Phase 2 data, which showed a median overall survival of 26.3 months in patients treated with ONC201, compared to 12 months for similar patients who were not in the study.
Interim data from this trial is expected in early 2025 with final data in 2026.
There are additional opportunities for upside, analysts noted, depending on the size of the H3 K27M-mutant glioma market and if the company can get clarity from the Food and Drug Administration as to whether a companion diagnostic will be needed for H3 K27M-mutant glioma.
Shares of Chimerix fell more than 5% Thursday to $1.36.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel