GTHX (G1 Therapeutics) Stock Analysis

This is an initiation to cover G1 Therapeutics. After a stock screen using several parameters, GTHX may be an interesting lead as it has several Phase 2 trials currently ongoing.

Introduction to GTHX

G1 Therapeutics (GTHX) is a clinical stage pharmaceutical company based in Durham, NC. It is a company with several pipeline products in oncology focusing on modulating the activity of CDK4 and CDK6 cell cycle related enzymes in cancer patients.

It recently IPO’ed on May 17, 2017 at $15/share and raised $105M from the IPO. The IPO was led by JPM and Cowen & Co. The capital from the IPO will be used to develop the 3 pipeline products, which $45M will be allocated to develop its frontrunner, trilaciclib in various cancer indications. Its current price is around $16-17/share.

Its current 12-months target prices are:

JP Morgan: $23.00 +35.3% (6/12/2017),

Needham & Co.: $34.00 +100% (6/12/2017) and

WedBush: $31.00 +82.4% (6/11/2017).

As of 7/8/2017,

Pipeline/Product Analysis: Part I. Preclinical data

(1) AACR 2014 Abstract – Novel CDK4/6 Inhibitors provide robust antitumor activity in a murine model of luminal breast cancer (Link)

GTHX presented preclinical mouse data that indicates the CDK4/6 inhibitors (100182, 100183 and 101551) can significantly change the tumor volume compared with control. Table 1 below shows that these inhibitors selectively inhibit CDK4 and sparring the CDK2.

In terms of safety, the group reported reversible myelosuppression with other signs of toxicity or deaths related to the inhibitors.

These inhibitors are highly potent to CDK4/6 with nanomolar concentration of IC50. The above diagram shows that these preclinical inhibitors have promising objective response in the breast cancer model. However, the level of volume change is not shown in the abstract found online.




To be continued… Work in progress