## BofA Securities Upgrades Tyra Biosciences: Promising Data Fuels Bullish Outlook for Urothelial Carcinoma Treatment
BofA Securities has shown confidence in Tyra Biosciences, a clinical-stage biotechnology company focused on developing innovative precision medicines, by upgrading its rating from Neutral to Buy. This optimistic move comes with a price target of $31, significantly higher than the previous $22, and is fueled by the promising preclinical data for TYRA-300, the company’s lead drug candidate.
Tyra Biosciences is making waves in the oncology space with its focus on improving small molecule drug discovery and development for targeted oncology and genetically defined conditions. The company boasts a pipeline of four preclinical candidates, with TYRA-300 taking center stage. This drug has demonstrated promising results in preclinical studies, particularly in the treatment of hypochondroplasia (HCH), the most common form of dwarfism.
In July, Tyra Biosciences announced the exciting findings of preclinical proof-of-concept results with TYRA-300 in HCH. The drug demonstrated a significant increase in the length of the appendicular skeleton in FGFR3 mutated mice. The femur saw a 3.70% increase compared to the control group, the tibia 3.75%, the humerus 3.22%, and the ulna 5.03%. Notably, TYRA-300 also increased the size of the foramen magnum by 5.88% (p<0.05) in mice. This suggests the drug's potential to address a crucial aspect of HCH, a condition characterized by skeletal abnormalities and a small foramen magnum.
Beyond HCH, TYRA-300 has caught the attention of investors due to its potential in treating urothelial carcinoma, a type of bladder cancer. The upcoming presentation of phase 1/2 SURF-301 data for TYRA-300 in urothelial carcinoma/solid tumors at the ENA Meeting next week has fueled BofA's optimistic outlook. While Johnson & Johnson's erdafitinib has set a high bar for efficacy in this area, its poor tolerability has limited its widespread use. BofA analysts believe that TYRA-300's differentiated safety profile could be a game-changer, putting it ahead of the curve in treating urothelial carcinoma.
The analyst notes that the updated model reflects the potential for greater uptake of an FGF3R-inhibitor with improved safety characteristics, leading to a significant increase in the likelihood of success (LoS) risk adjustment from 15% to 35% in metastatic urothelial carcinoma (mUC). With these projections, BofA anticipates adjusted sales of $175 million by 2030 for metastatic urothelial carcinoma, a substantial increase from their previous estimate of $35 million and aligning closely with the consensus forecast of $182 million.
Tyra Biosciences has experienced a strong year, with its stock price showing impressive growth (YTD +89% vs. +10% NBI). This upward trend has been amplified by the recent news and the promising potential of TYRA-300. On Friday, TYRA stock closed at $26.96, up 3.77% from the previous day.
As Tyra Biosciences moves closer to clinical milestones and prepares to showcase its latest data at the ENA Meeting, the industry will be watching closely to see how TYRA-300 performs and if it can truly live up to the expectations set by BofA Securities.