Wells Fargo Starts Pyxis Oncology Inc. (PYXS) at Overweight

Wells Fargo analyst Derek Archila initiates coverage on Pyxis Oncology Inc. (NASDAQ: PYXS) with a Overweight rating and a price target of $12.00.

tHE ANALYST COMMENTS "We think the Street underappreciates two things: dose capping likely addresses concerns on MICVO's safety, and the 2L+ HNSCC oppty is wide open as EGFR bispecifics take over 1L. Our base case forecasts shares at least doubling on the Fall '26 update. Efficacy looks differentiated, not incremental. MICVO is a first-in-class ADC targeting EDB+FN in the tumor stroma—independent of EGFR, PD-L1 and HPV status—and its 46% confirmed ORR and 92% disease control rate in heavily pre-treated (median 3 prior lines) 2L+ pts is, per our KOLs, "unusually strong" for a single agent vs. cetuximab (~10-13% ORR) or chemo, with activity seen across HPV-positive and -negative tumors alike, though durability remains a swing factor. Safety is the real debate, and we think the Street is under-crediting the fix. Gr3 payload events (6/7) and all 5 treatment discontinuations clustered in the high bodyweight pts, and PYXS' PK modeling, consistent with our precedent analysis across approved ADCs that use dose capping, support a 15-20% exposure reduction in pts ≥80kg. Our KOLs would view discontinuations falling toward the single digits and Gr3 neuropathy near ≤20% as clearing the bar to move MICVO ahead into pivotal development. We see a favorable risk/reward into the Fall 2026 readout. For the update, we expect ~40-45 pts of data at the 5.4mg/kg MICVO dose, with a large % receiving either the formal dose cap or dose cap equivalent—mgmt will report conventional dosing vs. capped/equivalent dosing to assess the strategy's impact. Our KOLs believe a 30-40% ORR and 4-6mos PFS (if reported) will be strong efficacy in this 2L+ HNSCC pt pop, but importantly want to see Gr3 neuropathy rates drop meaningfully with the dose cap."

For an analyst ratings summary and ratings history on Pyxis Oncology Inc. click here. For more ratings news on Pyxis Oncology Inc. click here.

Shares of Pyxis Oncology Inc. closed at $2.65 yesterday.

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