ZNTL - Diligence Notes
This is a shortened version of a post that was posted to the Amp forum on 1/17/24 and posted to the Pro Forum on 1/29/24.
ZNTL may have some readouts of their own and of competitors that are hard to predict. But it's long-term (mult-year) prospects look attractive.
Updated diligence notes*
Stock beaten down in 2023
Likely due to changing strategy for lead asset (Wee1 inhibitor) and deprioritizing others; as well as increased competition from other ovarian therapies, especially ADCs
Downslide in 2023 maybe from other negative readouts/discontinuations from other programs (at least 3 others have been discontinued, some in 2022 and at least 1 in 2023)
Hedge Funds holding ZNTL decreased from 6 to 4 of 36 top funds from Q2 to Q3
Lead asset ZN-C3 oral Wee1 inhibitor
Platinum-resistant ovarian cancer focus (See large market (See FIG. 1 📷)) and current treatment paradigm FIG. 2 📷), but likely active in other cancers too
Better safety/tolerability than prior Wee1
Now focusing on 1st line maintenance (See FIG. 3 📷)
Key competitors in ADC space may continue to make progress this year, which could hurt stock
They specifically mention MRK/Daichi - Raludotatug deruxtecan
ZNTL has their own ADC platform, but they recently outlicensed that to Immunome.
Looks promising long term, but 2023 doesn't seem to have high confidence mover readouts.
There are some events though - that might surprise
e.g. ZN-C3 +Gem osteosarcoma or further updates)
Competitive ovarian ADC readouts
Footnote
^1 Helpful Jeffrey's conference call from Nov 2023 HERE
This is not legal or investment advice. Do your diligence before investing.
History
Posted by EJV 2/13/24
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