Cantor Fitzgerald initiated coverage on Ambrx Biopharma Inc
with an Overweight rating and a price target of $25.
The peak sales potential of Ambrx's pipeline of antibody-drug conjugates (ADCs) is underappreciated, says the Cantor analyst.
The analyst says that ADCs are targeted treatments for cancer, and unlike chemo, ADCs target and kill tumor cells while minimizing damage to healthy cells.
M&A deals and collaborations for ADCs underscore a large market opportunity for these drugs.
Cantor analyst also writes that Ambrx's proprietary synthetic amino acid-enabled conjugation technology prevents the premature release of its cancer-killing toxic payload.
The analyst notes that the Street is attributing little to no value to Ambrx's ADCs outside of oncology. While the company focuses on ARX788 and ARX517, these non-core programs may present compelling business development opportunities.
Ambrx says it has sufficient capital to execute its development plans into 2025. It brings the company through several potential value-creating inflection points.
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