H.C. Wainwright Reiterates Buy Rating on ALX Oncology (ALXO)

H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating and $2.00 price target on ALX Oncology (NASDAQ: ALXO).

The analyst commented: "ALX Oncology hosted an virtual investor event to discuss the preclinical data and development strategy for the company’s EGFR-targeted ADC, ALX2004. The drug is designed uniquely in that it harbors a proprietary topoisomerase 1 inhibitor payload that is conjugated to an EGFR-targeting antibody through a proprietary linker. The company identified a unique anti-EGFR antibody with an epitope that is not recognized by any of the FDA approved antibodies, such as cetuximab and panitumumab, with an affinity that allows for increased tumor uptake relative to healthy tissue. We believe this antibody design allows for treating patients who are resistant to prior EGFR antibody treatment. The proprietary linker-payload architecture used cysteine conjugation with enhanced chemistry that allows for plasma stability, ensuring release of the payload in the tumor environment and minimizing systemic exposure. Finally, the payload, a unique topoisomerase 1 inhibitor, being used has a wide therapeutic window that possesses potent killing of tumor cells and can impart a bystander effect on neighboring EGFR expressing tumor cells. Overall, we believe ALX2004 is designed to be effective in EGFR resistant tumors with limited systemic exposure. Reiterate Buy rating and $2 PT."

For an analyst ratings summary and ratings history on ALX Oncology click here. For more ratings news on ALX Oncology click here.

Shares of ALX Oncology closed at $0.46 yesterday.

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