Nuvalent, Inc. (NUVL) is a Buy On lung Cancer Treatment Prospects

Nuvalent Inc. (NASDAQ:NUVL) is one of the best 52-week high stocks to buy right now. On November 24, Truist Securities initiated coverage of Nuvalent Inc. (NASDAQ:NUVL) with a Buy rating and a $140 price target, impressed by the company’s prospects in lung cancer drug development.

Nuvalent, Inc. (NUVL) is a Buy On lung Cancer Treatment Prospects

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The company’s cancer drugs Nela and Zide are on the cusp of being approved for commercialization in lung cancer treatment. The US Food and Drug Administration has accepted the company’s New Drug Application for Zide.

The research firm expects the company’s Zide treatment to capture significant market share in TKI-pretreated ROS1-positive NSCLC. The drug could secure regulatory approval by the second quarter of next year following Breakthrough Therapy Designation.

On the other hand, on November 24, Nuvalent Inc. completed a public offering of 4.95 million Class A shares at $101 each, raising about $500 million in gross proceeds before fees and expenses, the company announced.

On November 20, Jefferies lifted its price target on Nuvalent to $164 from $137 and kept its Buy rating after reviewing topline results from the ALKove-1 trial of neladalkib in previously treated NSCLC. The drug showed a 17.6-month median response duration, more than twice the current standard, with a clean safety profile, no neurotoxicity, and solid activity in CNS disease and key ALK mutation groups. Jefferies views it as a strong contender for second- and third-line therapy. Nuvalent is pushing for a broad label and expects the drug’s durability to help it capture a sizeable share of an ALK-positive market that could top $5 billion.

Nuvalent, Inc. (NASDAQ:NUVL) is a clinical-stage biopharmaceutical company that creates precisely targeted therapies for cancer patients. Using its expertise in chemistry and structure-based drug design, the company develops innovative small-molecule drugs to overcome resistance, minimize side effects, and improve durability in patients with various cancers, particularly those affecting the lungs.

While we acknowledge the potential of NUVL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NUVL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.