On Thursday, Oppenheimer adjusted its outlook on Viracta Therapeutics (NASDAQ:VIRX), decreasing the price target to $11 from the previous $13 while maintaining an Outperform rating. The firm's decision follows Viracta's first quarter 2024 financial results and company updates released on May 9, 2024.
Additionally, insights were gleaned from a recent meeting with Viracta's management team, including the CEO, CMO, and new CFO Michael Faerm in New York City.
Faerm's experience as interim CFO at Harpoon, before its acquisition by Merck, was highlighted as part of the management's qualifications. The next significant event for Viracta is expected to be the release of a more comprehensive data package from Stage 1 and 2 trials in the third quarter of 2024. This release is anticipated to act as a key catalyst for the company.
The firm also noted the importance of an upcoming mid-2024 meeting with the FDA, which is crucial for confirming the requirements for accelerated approval of Viracta's treatments. The developments in the treatment of diffuse large B-cell lymphoma (DLBCL), post-transplant lymphoproliferative disorder (PTLD), and solid tumors are reportedly gaining momentum, with updates expected by the end of 2024.
Oppenheimer has updated its operating expense (OPEX) spend assumptions for Viracta and has delayed the projected launch of its Nana-val heme malignancies product to 2027. Despite the revised price target and launch timeline, the firm remains bullish on Viracta's prospects.
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