Solskin
May 23 was a significant day for patients, oncologists and investors in the treatment of head and neck cancer. In preparation for presentations at the American Society of Clinical Oncology, or ASCO, both Bicara Therapeutics Inc. (NASDAQ:
Bicara Therapeutics Looks To Reclaim Some Of The Spotlight From Merus
Summary
- Merus initially surged on superior interim trial data while Bicara Therapeutics tanked, but Bicara has since rebounded post-ASCO as investors reconsider the data and target market.
- BCAX targets the tougher HPV-negative head and neck cancer segment, representing 80% of cases, and boasts a higher complete response rate than MRUS.
- Despite analyst preference for MRUS, BCAX’s durability argument and deep response rates could drive long-term value if validated in future studies.
- BCAX trades at 1/20th of MRUS’s enterprise value; I expect the valuation gap to narrow as the market recognizes BCAX’s differentiated potential.
- With enough cash until mid-2029, BCAX remains at little risk of dilution at this time.
I am a private investor based out of Toronto, Canada and I have been investing since 2003. After 8 years in Corporate Finance with a Canadian Telecom company I have decided to dedicate myself full-time to the capital markets. I write on Seeking Alpha to demonstrate my financial analysis and writing skills across a variety of industries and to take advantage of any story-based trading opportunity that may arise. My passion and greatest depth of knowledge is on Canadian small cap stocks and I consider my blog posts to be some of my best work. I am interested in any freelance opportunities that may arise outside of Seeking Alpha on Canadian or American listed stocks. Currently challenging myself to do a high volume of quality analysis.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BCAX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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