Past Nuvation Bio posts can be found in date order, by clicking here Nuvation Bio.
There are many different ways to calculate a stock price target for a given stock. One way is to use a comparison valuation method. This post considers the current market valuation ($2.932 billion) for Nuvation Bio.
For comparison valuation; In June of 2022 Bristol Myer Squibb offered 4.1 billion to buy Turning Point Therapeutics for their lead drug candidate Repotrectinib a TKI inhibitor for the same indication that Nuvation has been FDA approved for ROS1 NSCLC, BMS News.
Their interest was lead drug Repotrectinib for ROS1 NSCLC. At the time Repotrectinib had only completed phase 1/2 testing of the drug, and not FDA approved, until 11/23, then again 6/24 for NTRK gene-fusion positive tumors.
If we were to apply the 4.1 billion that Turning Point was acquired for, and relate it to NUVB today, it would calculate out to $4100B / 343m shares outstanding = $11.95 per share price target.
- Keeping in mind that Nuvation's lead drug Ibtrozi has already received FDA approved for ROS1 NSCLC and has a global footprint in place to distribute the drug, something that Turning Point did not have at the time of acquisition by BMS.
- Nuvation has already achieved revenues for newly approved Ibtrozi.
- This comparison is void of any head-to-head efficacy discussion of Ibtrozi vs Repotrectinib which should be viewed in another post altogether.
- Nuvation's second drug candidate Safusidenib has entered pivotal phase 3 testing for another unmet need, in glioma.
Comparison's can be tricky, but in this case, I would consider the $11.95 stock price of Nuvation Bio ($4.1 billion valuation) the minimum price target, based on this comparison. Chart below, thank you for reading.
