Checkpoint Therapeutics Inc. (NASDAQ: CKPT) gained 19.17% after B. Riley analyst Justin Walsh commenced coverage on the stock with a Buy rating and a price target of $18. The stock lost 4.42% in the last trading session.
Justin Walsh initiates coverage on Checkpoint
According to Bloomberg, Checkpoint concentrates on cancer treatment. Walsh believes that its flagship medication, cosibelimab, will do well in clinical trials and gain market share thanks to its pricing approach for solid tumors treatment. However, Walsh said that investors do not appreciate the full potential of cosibelimab and would-be buyers in anticipation of the pivotal top-line data in skin cancer expected in the second half of 2021.
The clinical-stage biotech’s cosibelimab drug targets metastatic or recurrent cancers and it has another candidate, CK-101, intended for non-small cell lung cancer treatment. Interestingly both drugs are currently in clinical trials. In addition, recently, the company announced the completion of enrolment in the registration enabling the study of cosibelimab in treating metastatic cutaneous squamous cell carcinoma.
The checkpoint was recently trading at $3.35, up 26%. Its stock has risen 5% in the six months to Tuesday’s close, compared to a 15% growth for the S&P 500.
Cosebelimab has a revenue potential of $1.3 billion
Walsh indicated that considering his revenue growth estimates for the company and cash flow by 2028 shows the stock could gain by almost 600%. The flagship drug candidate has potential relative to comparable therapies that achieved more than $15 billion in sales in the US last year. He projects that the estimated revenue potential of cosibelimab could be $1.3 billion in risk-unadjusted net sales.
With a focus on cancer immunology, the company operates in a high potential area in the biotech field. Following the bullish sentiment from Walsh, it is likely that the stock will be on the radar of most investors.