BOSTON - Pyxis Oncology, Inc. (NASDAQ:PYXS), a clinical-stage company with a market capitalization of approximately $90 million, announced a strategic shift to prioritize its lead clinical program, PYX-201, an antibody-drug conjugate (ADC) designed to target a structural component within the tumor extracellular matrix. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 7.33, though it's currently trading near its 52-week low. This decision follows the presentation of positive preliminary data from an ongoing Phase 1 trial in November 2024, showing promising results in various solid tumors, particularly in head and neck squamous cell carcinoma (HNSCC).
The Phase 1 dose-escalation study of PYX-201 showed a 50% objective response rate (ORR) in HNSCC patients, including one complete response, and a 100% disease control rate among six evaluable patients. The trial, which encompassed six solid tumor types, reported a 26% ORR across 31 patients at therapeutically active dose levels. These findings support the continued development of PYX-201 in both monotherapy and combination therapy trials.
As a result of this focus, Pyxis Oncology will suspend its investment in another clinical program, PYX-106, a monoclonal antibody targeting Siglec-15, to allocate resources more efficiently. PYX-106 had been observed as generally safe and well-tolerated in a Phase 1 monotherapy trial involving 45 patients with advanced solid tumors.
The company's President and CEO, Lara S. Sullivan, M.D., expressed confidence in the potential of PYX-201, particularly for addressing unmet needs in HNSCC. While InvestingPro data shows the company is quickly burning through cash with an EBITDA of -$61.25 million in the last twelve months, Pyxis Oncology's current financial position is expected to support the planned trials of PYX-201 into the second half of 2026. The company maintains more cash than debt on its balance sheet, providing some financial flexibility.
Pyxis Oncology is dedicated to developing next-generation therapeutics for difficult-to-treat cancers. PYX-201 is currently being evaluated in multiple types of solid tumors in ongoing Phase 1 clinical studies. The company's therapeutic candidates aim to directly kill cancer cells and address factors in the microenvironment that enable the uncontrolled proliferation and immune evasion of malignant tumors. With analysts setting price targets ranging from $7 to $13, investors seeking deeper insights into Pyxis Oncology's financial health and growth prospects can access comprehensive analysis through InvestingPro's detailed research reports, which include over 30 key financial metrics and expert analysis.
This article is based on a press release statement from Pyxis Oncology.
In other recent news, Pyxis Oncology Inc. reported promising initial clinical data from its trial of '201 ADC, leading RBC Capital Markets to upgrade its price target for the company's shares from $7 to $10, while maintaining an Outperform rating. The '201 ADC demonstrated efficacy across six different tumor types, particularly in head and neck squamous cell carcinoma. RBC Capital suggests that despite some safety concerns, the drug profile indicates it is well tolerated and shows potential for further development.
In addition to this, Pyxis Oncology recently expanded its equity and incentive plan by adding 5.5 million shares, as approved by stockholders. The company's financial performance for the quarter ending June 2024 met expectations, reporting no revenues but a net loss of $0.29 per share, less than the anticipated loss of $0.34 per share. H.C. Wainwright projects that Pyxis will generate revenues of $16 million and incur a net loss of $0.89 per share in fiscal year 2024.
The company also sold royalty rights to Novartis AG (SIX:NOVN) for $8 million, which will be used to advance the development of its lead Antibody-Drug Conjugate (ADC) asset, PYX-201. Following the annual stockholders' meeting, new board members were elected and Ernst & Young LLP was ratified as the company's independent auditor for the fiscal year ending December 31, 2024. Analysts from H.C. Wainwright, Stifel, Jefferies, and RBC Capital have all given the company a Buy or Outperform rating.
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