Tuesday - H.C. Wainwright has maintained a Buy rating for Cogent (NASDAQ: COGT) shares.
The revision follows the announcement made by GlaxoSmithKline (NYSE:GSK) regarding its acquisition of IDRx, Inc., a clinical-stage biopharmaceutical firm specializing in precision therapeutics for gastroinestinal stromal tumors (GIST).
GlaxoSmithKline's agreement to purchase IDRx, Inc. includes an upfront payment of $1 billion with the possibility of an additional $150 million tied to regulatory approval milestones.
The deal centers around IDRx's leading drug candidate, IDRX-42, which is a highly selective KIT tyrosine kinase inhibitor (TKI) in development as a treatment for GIST in both first- and second-line therapy settings.
The efficacy of IDRX-42 was showcased at the Connective Tissue Oncology Society (CTOS) 2024 meeting, where it demonstrated a 29% objective response rate (ORR) across all patients, with a median of four prior lines of therapy. Notably, the ORR reached 53% among second-line patients.
The recommended Phase 1b dose (RP1bD) of 400mg capsule/300mg tablet once daily showed an ORR of 26% in the total efficacy evaluable population.
Safety data from the study indicated an 8% dose reduction rate due to treatment-related adverse events (TRAEs) at the RP1bD, with no TRAEs leading to discontinuation of the treatment.
The acquisition of IDRx by GlaxoSmithKline and the development of IDRX-42 are significant steps forward in the treatment of GIST, reflecting the ongoing advancements in precision therapeutics.
The firm reduced Cogent shares' target price from $17.00 to $14.00.
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