Perspective Therapeutics' Cancer-Focused Radiotherapy Portfolio Has Upside Potentional, Says Analyst

H.C. Wainwright & Co. initiated coverage on Thursday for Perspective Therapeutics, Inc. (NASDAQ:CATX), a clinical-stage biotechnology company advancing “targeted radiotherapy agents” for cancer treatment.

Analyst Robert Burns initiated a Buy rating and a price target of $10.

The company’s pipeline comprises:

• VMT01/02 for melanoma, which is being studied as both monotherapy and in combination with Opdivo (nivolumab).
• VMT-α-NET for various neuroendocrine cancers and other SSTR2-expressing tumors.
• PSV359 for multiple solid tumor types.
• PSV40X for prostate cancer.

The company’s melanoma (VMT01) and neuroendocrine tumor (VMT-α-NET) programs have entered Phase 1/2a imaging and therapy trials for metastatic melanoma and neuroendocrine tumors.

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In January, Perspective Therapeutics revealed updated interim results from its ongoing Phase 1/2a trial of [212Pb]VMT-α-NET. Anti-tumor activities have been observed with a longer follow-up. As of the data cut-off date of Jan. 10, 2025, there were two unconfirmed responses and one confirmed response, as in Cohort 2.

H.C. Wainwright & Co. writes that from a safety perspective, 212Pb-VMT-α-NET appears to be relatively benign at the dose levels tested thus far.

The analyst writes that PSV359 and VMT01/02 constitute upside potential. Burns also notes that in preclinical experiments, VMT01/02 demonstrated high response rates in multiple tested models and >70% complete and durable response when combined with PD1 immunotherapy in a model highly resistant to checkpoint inhibitors

Perspective Therapeutics disclosed initial preclinical results for its FAPtargeted asset, PSV359 and views the preclinical anti-tumor efficacy as encouraging. The analyst also writes it is difficult to benchmark it against 177LuFAP-2286 and PNT6555 because these experiments were performed in a completely different mouse model.

“Additionally, when we think about potential targets for targeted radioligand therapy (TRT), we believe that most of the targets being pursued by ADCs and/or cell therapy are viable targets for TRT. As such, we view the targeted radioligand space as analogous to where the ADC space was a few years ago,” Burns writes.

Here are some M&A in the radiopharmaceutical therapeutics space:

• In 2023, Bristol Myers Squibb & Co (NYSE:BMY) acquired RayzeBio for $62.50 per share in cash, for a total equity value of approximately $4.1 billion, or $3.6 billion net of estimated cash acquired. 
• In 2023, Eli Lilly And Co (NYSE:LLY) acquired POINT Biopharma Global for $12.50 per share in cash, an aggregate of approximately $1.4 billion.
• In 2024, AstraZeneca Plc (NASDAQ:AZN) acquired Fusion Pharmaceuticals for $21 per share in cash plus a non-transferable contingent value right of $3 per share in cash payable upon the achievement of a specified regulatory milestone.

CATX Price Action: Perspective Therapeutics stock is down 0.75% at $2.64 at publication Thursday.

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