JP Morgan maintains Overweight on ORIC Pharmaceuticals, PT down to $17.

JP Morgan maintains Overweight on ORIC Pharmaceuticals, PT down to $17.

In a recent update, JP Morgan has maintained its Overweight rating on ORIC Pharmaceuticals (NASDAQ:ORIC), while adjusting its price target down to $17. The decision comes amidst a series of developments in the company's pipeline and financial performance.

ORIC Pharmaceuticals reported a second-quarter net loss of $36.4 million, marking a significant financial setback. However, the company has been making strides in its clinical trials, particularly with ORIC-944, a potential best-in-class PRC2 inhibitor for prostate cancer. The drug showed promising preliminary efficacy data in a Phase 1b trial, with a 59% PSA50 response rate and a 24% PSA90 response rate [2].

JP Morgan's analysts highlighted the upcoming catalysts for ORIC Pharmaceuticals, including dose-escalation data for ORIC-944 in the second half of 2025 and dose-optimization data in the first quarter of 2026. They also noted the potential for key Pfizer Phase III data in early 2026. Additionally, comprehensive data for ORIC-114, a potential treatment for non-small cell lung cancer (NSCLC) with EGFR exon 20 insertions, is expected in the second half of the year [2].

The company's cash position has strengthened, with a pro forma cash balance of $436.4 million as of June 30, 2025, extending its runway into the second half of 2028. This financial stability is crucial for supporting the company's clinical development plans and maintaining a healthy current ratio of 12.0 [2].

Despite the financial challenges, ORIC Pharmaceuticals has received positive analyst ratings from firms like Ladenburg Thalmann, Cantor Fitzgerald, and H.C. Wainwright. These analysts have noted the potential differentiation of ORIC-944 from existing treatments and the drug's promising prospects in prostate cancer treatment [2].

In conclusion, while ORIC Pharmaceuticals faces financial headwinds, its clinical pipeline and upcoming data releases present significant upside potential. JP Morgan's Overweight rating and adjusted price target reflect the balance between these risks and opportunities.

References:
[1] https://www.marketscreener.com/news/oric-pharmaceuticals-reports-q2-net-loss-of-36-4-mln-ce7c51dadf8cf22c
[2] https://au.investing.com/news/analyst-ratings/oric-pharmaceuticals-stock-price-target-raised-to-23-by-jefferies-93CH-3975468