Biotech Alert: Searches spiking for these stocks today

These names in the biotech sector are seeing a substantial increase in search activity today, as determined by InvestingChannel. They include: 

• Bicycle Therapeutics (BCYC), 1,492% surge in interest
• Vir Biotechnology (VIR), 139% surge in interest
• Innate Pharma (IPHA), 85% surge in interest
• Checkpoint Therapeutics (CKPT), 62% surge in interest
• Editas (EDIT), 58% surge in interest

Pipeline and key clinical candidates for these companies:

Bicycle Therapeutics is a clinical-stage biopharmaceutical company developing a novel class of medicines, referred to as Bicycle molecules, for diseases that are underserved by existing therapeutics. Bicycle molecules are fully synthetic short peptides constrained with small molecule scaffolds to form two loops that stabilize their structural geometry. The company is evaluating BT8009, a Bicycle Toxin Conjugate targeting Nectin-4, a well-validated tumor antigen; BT5528, a BTC targeting EphA2; and BT7480, a Bicycle TICA targeting Nectin-4 and agonizing CD137, in company-sponsored Phase 1/2 trials. 

Vir Biotechnology is an immunology company focused on combining cutting-edge technologies to treat and prevent infectious diseases and other serious conditions. Vir has assembled two technology platforms that are designed to stimulate and enhance the immune system by exploiting critical observations of natural immune processes. Its current clinical development pipeline consists of product candidates targeting hepatitis B and hepatitis delta viruses, influenza A and B, human immunodeficiency virus and COVID-19. Vir has several preclinical candidates in its pipeline, including RSV/MPV and HPV.

Innate Pharma is a clinical-stage biotechnology company developing immunotherapies for cancer patients that says its “innovative approach aims to harness the innate immune system through three therapeutic approaches: monoclonal antibodies, multi-specific NK Cell Engagers via its ANKET proprietary platform and Antibody Drug Conjugates.” Innate’s portfolio includes lead proprietary program lacutamab, developed in advanced form of cutaneous T cell lymphomas and peripheral T cell lymphomas, monalizumab developed with AstraZeneca in non-small cell lung cancer, as well as several ANKET drug candidates to address multiple tumor types as well as IPH4502 a differentiated ADC in development in solid tumors.

Checkpoint Therapeutics is focused on the acquisition, development and commercialization of novel treatments for patients with solid tumor cancers. Checkpoint is evaluating its lead antibody product candidate, cosibelimab in an ongoing global, open-label, multicohort Phase 1 clinical trial in checkpoint therapy-naive patients with selected recurrent or metastatic cancers, including ongoing cohorts in locally advanced and metastatic cutaneous squamous cell carcinoma, or “cSCC,” intended to support one or more applications for marketing approval. Checkpoint is evaluating its lead small-molecule, targeted anti-cancer agent, olafertinib, formerly CK-101, as a potential new treatment for patients with EGFR mutation-positive non-small cell lung cancer.

Editas Medicine is focused on translating the power and potential of the CRISPR/Cas12a and CRISPR/Cas9 genome editing systems into a robust pipeline of treatments for people living with serious diseases around the world. Editas Medicine aims to discover, develop, manufacture, and commercialize transformative, durable, precision genomic medicines for a broad class of diseases. Editas Medicine is the exclusive licensee of Broad Institute’s Cas12a patent estate and Broad Institute and Harvard University’s Cas9 patent estates for human medicines.

Recent news on these stocks:

December 16

Lake Street raised the firm’s price target on Checkpoint Therapeutics to $7 from $4 and keeps a Buy rating on the shares after the company announced FDA approval of Unloxcyt for advanced cutaneous squamous cell carcinoma on Friday. The firm expects commercialization, likely in the second half of 2025, will be “via acquisition/partnership,” the analyst tells investors.

Evercore ISI lowered the firm’s price target on Editas Medicine to $5 from $7 and keeps an Outperform rating on the shares. Editas has decided to cut the reni-cel program following “a fruitless search for a commercial partner” and “fully morph into an in vivo gene editing company,” the analyst notes. There is “no clear front runner yet” who can unlock in vivo editing for sickle cell disease and Editas “has an equal shot to be a leader,” the analyst contends.

H.C. Wainwright lowered the firm’s price target on Bicycle Therapeutics to $33 from $55 and keeps a Buy rating on the shares afar the company data from the ongoing Phase 1/2 Duravelo-1 study evaluating the combination of zelenectide pevedotin and pembrolizumab in first-line metastatic urothelial cancer.

JPMorgan downgraded Editas Medicine to Underweight from Neutral wirthout a price target. The company last week announced the decision to pivot its research and development to focus on in vivo pipeline, the analyst tells investors in a research note. The firm believes there is “significant value” embedded in Editas’ technical expertise and intellectual property estate, but believes the “next major inflection point in the stock is still ways away.”

December 13

Checkpoint Therapeutics announced that the U.S. FDA has approved unloxcyt for the treatment of adults with metastatic cutaneous squamous cell carcinoma or locally advanced cSCC who are not candidates for curative surgery or curative radiation. Unloxcyt is the first and only programmed death ligand-1 blocking antibody to receive FDA marketing approval for this indication. The recommended commercial dosage of unloxcyt is 1,200 mg administered as an intravenous infusion over 60 minutes every three weeks.

B. Riley lowered the firm’s price target on Bicycle Therapeutics to $17 from $28 and keeps a Neutral rating on the shares. The stock dropped 35% intraday and now trading near cash after the clinical data presented for zelenectide pevedotin “were underwhelming,” the analyst tells investors in a research note. The firm says the most pressing concern is that Bicycle’s combination in first-line metastatic urothelial cancer appears to be inferior on a top-line basis to the well-established benchmark set by Padcev plus pembro. Riley views Bicycle’s current programs as net present value-negative and sees limited upside potential unless management demonstrates a shift in strategic direction with newer targets.

JonesResearch downgraded Editas Medicine to Hold from Buy with no price target after the company announced their decision to end the development of reni-cel, an ex vivo gene editor for the treatments of Sickle Cell Disease and Beta-Thalassemia. The firm, which notes that the company expects human proof of concept data from its in vivo gene editing technology in approximately two years, is downgrading as it continues to watch for additional in vivo editing data in 2025.

RBC Capital lowered the firm’s price target on Editas Medicine to $4 from $5 and keeps a Sector Perform rating on the shares. The firm is citing the company having announced the termination of reni-cel, the departure of the CMO and the resignation of two Board members, along with a workforce cut of about 65% of roles, the analyst tells investors in a research note. RBC adds however that while the runway for Editas is now extended by about 5 quarters, the firm remains neutral on the stock, with no upcoming catalyst for the company for the foreseeable future.

Chardan downgraded Editas Medicine to Neutral from Buy and withdrew the firm’s price target after the company announced a strategic transition to focus entirely on development of in vivo therapies after failing to find a partner for its clinical-stage ex vivo-edited sickle cell and beta thalassemia therapy, reni-cel. With reni-cel deal upside now ruled out and limited details on the in vivo pipeline, the firm moves to the sidelines pending “further visibility on potential near-term value inflection points.”

Baird lowered the firm’s price target on Editas Medicine to $8 from $10 and keeps an Outperform rating on the shares. The firm said they expect the shares could move higher as the in vivo programs move towards the clinic and clinical data nears, though it could be a number of quarters before momentum begins to build.

Barclays lowered the firm’s price target on Editas Medicine to $3 from $5 and keeps an Equal Weight rating on the shares. The company’s restructuring update included reni-cel discontinuation with no commercial partner identified and a workforce reduction including the chief medical officer, the analyst tells investors in a research note. The firm says the reprioritizing resets Editas Medicine’s development phase by years.

December 12

Truist downgraded Editas Medicine to Hold from Buy. The company shared a significant strategic update notable for ending reni-cel development and 65% reduction in workforce, the analyst tells investors in a research note. The firm said that, given rapidly evolving competitive dynamics, it’s difficult to have a view on Editas’ in vivo program at this juncture. Due to the lack of a clear path to value creating catalysts in the next 12-18 months, Truist is choosing to stay on the sidelines.

Stifel downgraded Editas Medicine to Hold from Buy with a price target of $3, down from $11. The company’s previously stated intentions to switch to in vivo editing “still left some hope” that reni-cel for sickle cell disease had a path forward, but the company’s decision to end development “after extensive search did not yield a commercial partner” is “disappointing,” the analyst tells investors. With reni-cel removed and a preclinical asset left to drive Editas’ valuation, the path forward “looks long and challenging,” the analyst added.

Editas Medicine announced a pivot to optimize its cost structure, extend its cash runway into Q2 2027, and position the company to accelerate its intent to achieve in vivo human proof of concept in approximately two years. The company intends to share pre-clinical data and further development timelines from these programs in the first quarter of 2025. The company said in vivo HSC editing success is expected to enable extrahepatic tissues/cell types targeting beyond HSCs and demonstrates the potential of “plug ‘n play” in an in vivo extrahepatic LNP platform. In connection with Editas Medicine’s transition to an in vivo company, the company initiated a reduction in headcount that will eliminate approximately 65% of its workforce over the next six months. As part of this reduction in force, several members of the Editas management team will depart the company over the next six months, including Baisong Mei, the company’s chief medical officer, or CMO. Additionally, Emma Reeve and Meeta Chatterjee are resigning from the board of directors, effective December 31. Jessica Hopfield has been named chair of the board, effective December 31.

Vir Biotechnology announced that tobevibart and elebsiran have received U.S. Food and Drug Administration Breakthrough Therapy designation and European Medicines Agency Priority Medicines designation for the treatment of chronic hepatitis delta. The designations are supported by compelling positive safety and efficacy data from the Phase 2 SOLSTICE trial, from which the Company recently presented new data at AASLD The Liver Meeting in San Diego, U.S. Vir Biotechnology’s Phase 3 ECLIPSE registrational program evaluating tobevibart and elebsiran in CHD will commence in the first half of 2025. CHD is a chronic, progressive liver disease caused by the hepatitis delta virus and is the most severe form of chronic viral hepatitis. CHD increases the risk of liver cancer and accelerates progression to cirrhosis and liver failure, which often occurs within 5 years of infection3. There is no approved treatment in the U.S., and options are limited in the European Union and globally. “Chronic hepatitis delta has devastating effects on liver and overall health, yet people living with this condition are still waiting for highly effective therapeutic options,” said Mark Eisner, M.D., M.P.H., Executive Vice President and Chief Medical Officer, Vir Biotechnology. “The Phase 2 SOLSTICE trial data suggests that tobevibart and elebsiran can rapidly and deeply suppress the hepatitis delta virus, driving it to undetectable levels. Receiving FDA Breakthrough Therapy and European PRIME designations recognizes this combination’s potential to transform the lives of people living with CHD. We look forward to advancing the Phase 3 ECLIPSE program as quickly as possible.”

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About “Biotech Alert”

The Fly will report on a selection of biotech stocks seeing a surge in interest from retail and financial professional investors, based on data from InvestingChannel.

This Fly exclusive recap reveals the biotech stocks that are seeing a spike in searches among the 20-plus million retail and financial professional investors through InvestingChannel’s online financial news media ecosystem.

This increased attention from the investors may be in response to, or advance of, outsized moves for stocks in the biotech sector, which tend to be volatile and prone to sharp swings in share price around binary events such as clinical study results and FDA approvals.