SWTX - SpringWorks Therapeutics: Multiple Opportunities But No Sure-Fire Winners
2024-04-19 15:55:00 ET
Summary
- SpringWorks Therapeutics received FDA approval for its oral gamma secretase inhibitor Ogsiveo for the treatment of desmoid tumors in November last year.
- Ogsiveo is the first therapy approved for desmoid tumors, with a market opportunity estimated at $2.2 billion. Sales in Q4 2023 were just $5m, however, while net loss was $325m.
- Ogsiveo could win approval in Europe and also in a new indication Ovarian Granulosa Cell Tumors, opening up larger markets.
- A second candidate, mirdametinib, may be on track for approval in the rare disease NF-1, and is being evaluated in oncology settings also - as is nirogacestat (Ogsiveo).
- With more early stage programs, and multiple catalysts in play, some may feel SpringWorks's shares - up over 70% on a 12-months basis - can realise further upside. There is alot of uncertainty, however, which I why I maintain a "hold" rating.
Investment Overview - The Pros & Cons Of SpringWorks
Back in November last year I shared a note on Seeking Alpha discussing SpringWorks Therapeutics ( SWTX ), on the day the company received FDA approval for its oral gamma secretase inhibitor Ogsiveo (nirogacestat), for the treatment of adult patients with desmoid tumors.
The Mayo Clinic describes desmoid tumors as follows:
SpringWorks Therapeutics: Multiple Opportunities, But No Sure-Fire Winners
Desmoid tumors are noncancerous growths that occur in the connective tissue. Desmoid tumors most often occur in the abdomen, arms and legs. Another term for desmoid tumors is aggressive fibromatosis.
Some desmoid tumors are slow growing and don't require immediate treatment. Others grow quickly and are treated with surgery, radiation therapy, chemotherapy or other drugs.
Desmoid tumors aren't considered cancers because they don't spread to other areas of the body. But they can be very aggressive, acting more like cancers and growing into nearby structures and organs. For this reason, people with desmoid tumors are often cared for by cancer doctors.