BDTX vs. ORIC: Which Oncology Focused Biotech Stock Is a Better Pick Now?

Core Insights - Black Diamond Therapeutics, Inc. (BDTX) and ORIC Pharmaceuticals (ORIC) are both clinical-stage oncology companies focused on developing next-generation cancer therapies [1][2] - The competition between BDTX and ORIC centers on the strength of their respective pipelines [2] BDTX Overview - BDTX is developing MasterKey therapies targeting oncogenic mutations, with its lead candidate being silevertinib, a fourth-generation EGFR MasterKey inhibitor [3][4] - Silevertinib has shown durable clinical responses in a phase I study for patients with recurrent EGFRm non-small cell lung cancer (NSCLC) [4] - BDTX is currently conducting a phase II study for silevertinib in both recurrent and frontline settings, with initial results expected in late 2025 [5][6] - The company has a global licensing agreement with Servier Pharmaceuticals for BDTX-4933, receiving an upfront payment of $70 million, allowing BDTX to focus solely on silevertinib [8] - As of Q2 2025, BDTX had approximately $142.8 million in cash, sufficient to fund operations into Q4 2027 [9] ORIC Overview - ORIC is advancing a pipeline of innovative therapies targeting resistance mechanisms in cancer, focusing on hormone-dependent cancers and precision oncology [12][13] - Key candidates include ORIC-944, an allosteric inhibitor for prostate cancer, and enozertinib, targeting various mutations in NSCLC [13][14] - ORIC has reported promising data for ORIC-944 in combination with AR inhibitors, with plans for further updates in late 2025 and a phase III study initiation in early 2026 [15][16] - ORIC is also conducting a phase I study for enozertinib, with initial data expected in mid-2026 [17][18] - A recent strategic prioritization will focus resources on ORIC-944 and ORIC-114, resulting in a 20% workforce reduction, extending the cash runway into the second half of 2028 [19] Financial Estimates and Performance - BDTX's earnings per share (EPS) estimate for 2025 suggests a 127.56% year-over-year increase, although recent revisions have been downward [20][21] - ORIC's EPS estimates for 2025 and 2026 have remained unchanged over the past 60 days [20][22] - Year-to-date, BDTX shares have increased by 85%, while ORIC shares have risen by 56.1%, compared to a 12.5% gain in the industry [22] - Valuation-wise, BDTX trades at 1.70X trailing 12-month book value, which is lower than ORIC's 3.78X [24] Comparative Analysis - Both companies have made significant progress in their oncology pipelines, but ORIC's broader pipeline and better cash runway position it as a more favorable investment compared to BDTX's reliance on silevertinib [25][26] - Silevertinib has the potential to address a wide range of mutations in NSCLC, but BDTX's limited pipeline poses risks if development setbacks occur [27][28]