Immunome stock a ‘buy' on ‘rich pipeline' of oncology therapeutics: analysts

Goldman Sachs initiated coverage on Immunome (IMNM) with a 'Buy' rating and a $26 price target, citing a "rich pipeline" of oncology therapeutics and an estimated $5 billion peak sales potential. Analysts highlighted varegacestat, currently in Phase 3 for desmoid tumors with data expected year-end 2025, as a potential best-in-class asset based on strong Phase 2 results that outperformed a competitor. Following the initiation, Immunome shares rose 6% to $10.39.

Analysis

Goldman Sachs has initiated coverage on Immunome, Inc. (IMNM) with a 'Buy' rating and a 12-month price target of $26, indicating significant potential upside from its current price of $10.39, which rose 6% following the news. The bullish thesis is predicated on a "rich pipeline" of oncology therapeutics with an estimated $5 billion peak sales opportunity. The firm's most advanced asset, varegacestat, is viewed as a potential best-in-class gamma-secretase inhibitor for desmoid tumors, with pivotal Phase 3 RINGSIDE study data anticipated at year-end 2025. This optimism is supported by Phase 2 data demonstrating a 75% overall response rate and 45% tumor reduction, which significantly outperforms the 41% response rate and 27.1% tumor reduction reported for Merck KGaA's competing drug, Ogsiveo. Notably, Goldman Sachs's valuation does not yet model the company's pre-clinical antibody-drug conjugate (ADC) programs, which are set to enter clinical trials next year and represent further "blockbuster" potential.

Key Decisions for Investors

• Given the strong analyst endorsement and significant upside to the $26 price target, investors with a high-risk tolerance for clinical-stage biotech could consider initiating a long position.
• The primary catalyst to monitor is the Phase 3 RINGSIDE trial data for varegacestat, expected at year-end 2025, as a positive outcome is fundamental to the current investment thesis.
• Investors should also track the progress of Immunome's pre-clinical ADC programs, which provide an additional, unmodeled source of potential value as they advance into clinical trials next year.