Janux Therapeutics Stock Hits 7-Month High On Prostate Cancer Drug Trial Data: Retail Confidence Spikes

Shares of Janux Therapeutics Inc. surged over 54% on Tuesday afternoon, reaching levels not seen since May and breaking a five-day losing streak. 

The rally followed the company’s Monday announcement of promising Phase I trial data for its prostate cancer treatment, JANX007.

In the trial, all 16 heavily pre-treated patients demonstrated a reduction of at least 50% in prostate-specific antigen (PSA) levels, a key indicator of cancer. 

The news sparked a wave of bullish analyst notes and retail investor enthusiasm.

Stifel raised its price target to $115 from $70, citing increased probabilities of success for JANX007 in second- and third-line metastatic castration-resistant prostate cancer. 

The brokerage now forecasts $1.7 billion in risk-adjusted sales from these indications. 

Leerink boosted its price target to $91, highlighting the treatment’s “best-in-class” safety and efficacy profile.

Cantor Fitzgerald took an even more optimistic stance, doubling its price target to $200. The brokerage praised JANX007 for achieving “unprecedented” PSA50 and PSA90 response rates while maintaining a tolerable safety profile. 

H.C. Wainwright also raised its target, albeit more modestly, to $70, increasing its probability of launch for JANX007 to 26% from 20%.

JANX sentiment and message volume on Dec 3 as of 2:15 pm ET | source: Stocktwits

Retail sentiment on Stocktwits turned ‘extremely bullish’ amid a sharp increase in message volume, with many users seeing the breakthrough as a major milestone. 

The treatment, a tumor-activated T-cell engager, leverages the immune system by recruiting white blood cells to attack cancer cells.

Janux has selected two once-weekly dose regimens for expansion trials targeting patients with two or three prior lines of therapy. 

The stock, up 460% year-to-date, is reportedly on track for its best year ever. 

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