Daiichi today reported updated Phase I data for its TROP2 antibody drug conjugate DS-1062 in non-small cell lung cancer, and while the drug's efficacy continues to impress, there do appear to be some safety signals popping up, Piper Jaffray analyst Joseph Catanzaro tells investors in a research note. Specifically, dose-limiting toxicities associated with skin rash/stomatitis were reported, which is notable as development of Pfizer's (PFE) TROP2 antibody drug conjugate was discontinued for excess skin rash and mucosa toxicity, adds the analyst. These data may or may not dampen concerns around DS-1062 being a competitive threat to Immunomedics' sacituzumab, says Catanzaro. However, he continues to believe Immunomedics is "very well-positioned" within triple-negative breast cancer and urothelial bladder cancer. The analyst reiterates an Overweight rating on the shares with a $20 price target. Following Daiichi's data, shares of Immunomedics are up 8% to $14.30.

Jefferies analyst Chris Howerton says that Immunomedics competitor DS-1062 showed "impressive" efficacy of 70%-plus cORR at RP2D, but he notes that n=7 is "quite small," and baseline characteristics could be different. Importantly, the analyst points out that one patient died of respiratory failure, and four reported potential ILD since data cutoff, including one death. Overall, he does not view DS-1062 as near-term comparable to IMMU-132's current pipeline. Howerton reiterates a Buy rating and $22 price target on Immunomedics' shares.

Piper Jaffray analyst Joseph Catanzaro notes that Immunomedics (IMMU) presented interim data from the Phase II TROPHY study of sacituzumab govitecan in postchemo/CPI urothelial bladder cancer at ESMO. Overall, the response rate of 29% is consistent with prior Phase I data, but he does believe some could be disappointed by this number as it relates to Seattle Genetics' (SGEN) 44% ORR for EV. Catanzaro would await more mature data before drawing any definitive conclusions on the competitive positioning of sacituzumab and EV in post-chemo/IO UBC, but ultimately believes the SC ORR in a larger cohort is approvable and that both drugs will play important roles in this landscape. He reirerates an Overweight rating and $20 price target on Immunomedics's shares.