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Baird has initiated coverage of Nuvalent (NASDAQ:NUVL) with an outperform rating, citing the potential of its two lead assets, NVL-520 and NVL-655, in the treatment of non-small cell lung cancer, or NSCLC.
The investment bank said it believes Nuvalent has “built a better mousetrap” with NVL-520 for ROS1+ lung cancer and NVL-655 for ALK+ lung cancer. It has modeled peak sales of $1.2B for previously treated ALK+ and $640M for previously treated ROS1+.
“We expect the pivotal studies reading out next year will validate best-in-class profiles, and growing confidence in the significant front-line ALK+ NSCLC opportunity should support further upside,” Baird said. It estimated the front-line ALK+ NSCLC market at more than $2B.
“We see both lead assets as billion-dollar-plus opportunities, supporting our $105 price target,” Baird added.
