Cantor Fitzgerald Keeping the faith 🤷🏻♂️ Large Cap Pharma, Biopharma, & Biotech Theratechnologies Inc. (THTX)
Company Update
Still Keeping The Faith Despite Pipeline Reset
Investment Summary. Today (12/1), Theratechnologies ("THTX") announced its decision to temporarily pause the enrollment of patients in its Phase 1 clinical trial of TH1902, its lead investigational peptide drug conjugate (“PDC”) for the treatment of sortilin- expressing cancers. The company plans to submit an amendment to its protocol to the U.S. FDA for approval, and we think it could restart trials 1Q23. Despite the clinical development reset, we remain positive on THTX shares and continue to believe that there is value to be unlocked in its pipeline. Therefore, we are reiterating our Overweight (OW) rating and $9 price target (PT) for the stock. On 12/21/22, Kristen Kluska, from our biotech team, is hosting a call to discuss investigational NAFLD/NASH treatments including THTX's tesamorelin. See here for the invitation and registration details.
THTX voluntarily made the decision to pause enrollment and revisit the study design after consulting with its investigators. The efficacy results observed thus far were not convincing enough to pursue enrolling patients and did not outweigh the adverse events seen in some patients. As previously reported, these adverse events consist mainly of neuropathy and eye toxicity.
The current intent for the protocol amendment is to modify the dosage regimen to optimize the delivery of TH1902, with lower doses at more frequent intervals. The company continues to investigate the results obtained thus far in the Phase 1 clinical trial.