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Baird initiated coverage of Nuvalent (NASDAQ:NUVL) with an outperform rating, citing the potential of its two lead assets, NVL-520 and NVL-655, in treating 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 modeled sales peaks of $1.2 billion for previously treated ALK+ and $640 million for previously treated ROS1+.
“We expect pivotal studies to be published next year will validate best-in-class profiles, and growing confidence in the significant first-line opportunities for ALK+ NSCLC should support further upside,” Baird said. The first-line ALK+ NSCLC market is estimated to be at more than $2 billion.
“We view both core assets as $1 billion-plus opportunities, supporting our $105 price target,” Baird added.