HOWL - Werewolf assumed Buy at Jefferies ahead of data for key cancer drug

2023-06-06 12:13:19 ET

Jefferies issued a Buy rating on Werewolf Therapeutics ( NASDAQ: HOWL ) on Tuesday, citing an attractive valuation in the cancer-focused biotech ahead of a data readout scheduled in Q4 2023 for WTX-124, one of its lead candidates.

WTX-124 is a conditionally activated form of Interleukin-2 essential for immune-mediated cancer killing and stimulating innate and adaptive immune cells.

Assuming coverage on Werewolf ( HOWL ), the analyst Kambiz Yazdi argues that WTX-124 will retain efficacy as it is based on a contrarian 'alpha' IL-2 hypothesis as opposed to non-alpha IL-2 approaches followed by most IL-2 drug developers.

Yazdi, who raises the price target on HOWL to $12 from $11 per share, also opines that WTX-124 will be safe given its precise mechanism of action.

"We expect WTX-124 will retain full potency because it embraces a contrarian 'alpha' IL-2 hypothesis and will remain safe because it has been cleverly engineered to drop its payload only in the tumor microenvironment," the analyst added.

Yazdi sees a  ~$800M probability adjusted sales for WTX-124 in metastatic melanoma ((mM)) and renal cell carcinoma ((mRCC)) where, according to him, the approval of synthetic interleukin-2 aldesleukin has validated the IL-2 use.

More on Werewolf

• Werewolf Therapeutics jumps ~10% after RA Capital ups stake, says may engage in talks
• Werewolf Therapeutics: A Clinical Stage Biotech On The Hunt For Results In 2023

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