Bank of America has initiated coverage of Bicara Therapeutics (NASDAQ:BCAX) with a “Buy” rating and a $35 price objective, citing the potential of its lead drug candidate to reshape first-line treatment for a form of head and neck cancer, according to a research note published Tuesday.
The analysts pointed to the company’s lead asset ficerafusp alfa (ficera) as the central driver of their outlook.
Bicara is focused on developing ficera for first-line recurrent/metastatic HPV-negative head and neck squamous cell carcinoma (HNSCC), a subset of a disease that affects roughly one million patients globally each year.
Analysts at Bank of America highlighted early clinical data from a phase 1b study of ficera in combination with pembrolizumab, noting a 54% objective response rate and a median progression-free survival of 9.9 months. The analysts contrasted this with current standard-of-care regimens, which typically show objective response rates of about 19% to 36% and median progression-free survival of roughly three to five months.
“Initial results suggest ficera could become the new SoC,” analysts wrote, adding that durability of response also appeared stronger, with a median duration of response of approximately 22 months compared with about seven months for existing combinations.
An interim analysis from the phase 3 trial in first-line recurrent/metastatic HPV-negative HNSCC is expected in mid-2027 and could support accelerated approval, according to the report.
Bank of America also pointed to expansion opportunities beyond head and neck cancer, noting that ficera is being evaluated in additional tumor types, including colorectal cancer, with early data expected in the second half of 2026.
“We think BCAX's decision to focus development on HPV-negative HNSCC makes sense given the clearer biological rationale in this population,” the analysts wrote.
The firm estimates ficera could achieve approximately $1 billion in risk-adjusted peak sales in the indication by 2037, assuming meaningful penetration across US and international markets. It also said the company is well capitalized to advance the program through potential commercialization.
On the competitive front, Bank of America acknowledged emerging therapies such as petosemtamab, but suggested the overall market is large enough to accommodate multiple players.
“We think the market is big enough to support multiple players,” the analysts noted, adding that their estimates already factor in competition in the HPV-negative segment.