Shares in drug developer Clarity Pharmaceuticals Ltd (ASX: CU6) are down about 25% over the past 12 months, but the analyst team at Bell Potter is tipping plenty of upside for the stock as its clinical trial activities continue.
Bell Potter has a bullish share price target on Clarity, which we'll get to shortly.
First, let's look at the latest news from the company.
Image source: Getty Images
Clinical trials looking promising
Clarity has developed two radiopharmaceutical compounds called 64Cu-SAR-bisPSMA and 67Cu-SAR-bisPSMA, which are being tested for their utility in treating metastatic castration-resistant prostate cancer (mCRPC).
The company said in early August that 19 participants were included in the most recent assessment of the safety and efficacy of 67Cu-SAR-bisPSMA, with a decline in prostate-specific antigen (PSA) in 74% of participants.
The company added further:
Two new participants in the Cohort Expansion phase of the SECuRE trial who were evaluable at data cut-off achieved complete response as assessed by RECIST. Combined with the five previously announced cases, this brings the total number of participants who achieved complete response or undetectable disease (assessed by RECIST, bone scan and/or PSA) across the 67Cu-SAR-bisPSMA program to seven. These observations demonstrate considerable anti-tumour activity of 67Cu-SAR-bisPSMA following a small number of … treatment cycles in metastatic castration-resistant prostate cancer (mCRPC) patients who have failed multiple lines of therapy.
Clarity Executive Chair Dr Alan Taylor said:
The SAR-bisPSMA product continues to generate an impressive body of evidence in clinical trials and case studies, highlighting the strength of the evidence in both diagnostic and theranostic applications. Most impressively, despite the relatively small numbers of patients enrolled in the SECuRE trial to date, and most having received up to 2 treatment cycles, we see a trend that is impossible to ignore. We continue seeing patients with mCRPC, who have gone through numerous lines of therapy prior to the SECuRE study enrolment, achieve undetectable disease and/or complete response following 67Cu-SAR-bisPSMA treatment.
Dr Taylor said the SECuRE trial would continue to enrol patients, "with Phase III registrational trial planning ongoing based on data that continues to be generated''.
Shares in this ASX biotech looking cheap
Bell Potter analysts said the efficacy data from the trial was "highly encouraging''.
They added:
Ultimately the choice of therapy for mCRPC should come down to survival data first, followed by patient safety and tolerability. Based on this update, which does not yet include overall survival data, we continue to hold the view that 67Cu-SAR-bisPSMA will ultimately yield data that will not only support approval but will become the choice of therapy for oncologists and patients alike.
Bell Potter has a speculative buy rating on Clarity with a price target of $6.40 compared to $2.81 currently.
Clarity is valued at $1.06 billion.
