Buy Rating for CG Oncology: Promising Market Position and Upside Potential of Cretostimogene in NMIBC Treatment

CG Oncology, Inc. (CGON) has received a new Buy rating, initiated by Morgan Stanley analyst, Sean Laaman.

Sean Laaman’s rating is based on the promising competitive profile of cretostimogene, CG Oncology’s lead product, particularly in the treatment of high-risk BCG-unresponsive non-muscle invasive bladder cancer (NMIBC). The Phase 3 results highlight its long-lasting response and favorable safety profile, which are crucial differentiators in the market. Additionally, the 12-month complete response rate is comparable to existing treatments like TAR-200, suggesting a strong position in the market.
Another factor contributing to the Buy rating is the potential for cretostimogene to address additional indications, which may not yet be fully reflected in the current stock price. The market currently values CG Oncology at a significant discount to the projected peak sales, indicating potential upside. Furthermore, the ease of administration and manufacturing advantages of cretostimogene, being similar to standard BCG therapy, could facilitate its adoption among urologists, enhancing its market competitiveness.

CGON’s price has also changed moderately for the past six months – from $38.050 to $26.990, which is a -29.07% drop .