ORIC: Working with Two Pharma Giants, Analysts See +100% Upside

Core Viewpoint - ORIC Pharmaceuticals is a small-cap pharmaceutical company with a focus on developing potentially "best-in-class" treatments, despite facing a challenging year with a -4% return in 2024. Analysts remain optimistic about the stock, with a significant price target increase anticipated [1][2]. Drug Candidates - ORIC has two leading drug candidates: ORIC-114, targeting cancers from EGFR and HER2 mutations, particularly in non-small cell lung cancer (NSCLC), and ORIC-944, aimed at treating prostate cancer by inhibiting the Polycomb Repressive Complex 2 (PRC2) [3][5]. - ORIC-114 has shown promising initial results, with 18 out of 27 patients experiencing a 75% or greater reduction in mutant EGFR gene molecules within four weeks [11][12]. - ORIC-944 is designed to enhance the effectiveness of existing prostate cancer treatments, working alongside AR-inhibitors that collectively generate around 10 billion in annual sales [7][9]. Collaborations and Market Position - ORIC has established collaboration agreements with major pharmaceutical companies like Johnson & Johnson and Bayer to improve their AR-inhibitors with ORIC-944, while Pfizer is also developing a PRC2 inhibitor, which adds confidence to ORIC-944's potential [8][9]. - The strategy of collaboration rather than competition aligns ORIC with the interests of larger companies, incentivizing them to support ORIC's success in the market [9]. Financial Position - The company has over 282 million in cash, providing sufficient funding until late 2026, alleviating immediate concerns about capital raising and shareholder dilution [13].