G1 Therapeutics Faces Challenges as Cancer Study Updates Impact Stock

By Josh Beckerman

G1 Therapeutics, a renowned healthcare company, experienced a significant drop of 54% in its shares following a cancer study update on Monday. Furthermore, Wedbush and Needham, both prominent financial institutions, lowered their price targets for G1 Therapeutics on Tuesday, compounding the company's challenges.

At present, the stock is trading at $2.08, marking a decline of about 40% over the past 52 weeks.

G1 Therapeutics is currently in the Phase 3 trial phase, evaluating trilaciclib in combination with gemcitabine and carboplatin for the first-line treatment of metastatic triple negative breast cancer. However, G1 Therapeutics has stated that it remains blind to all data as the early stopping criteria were not met during the interim analysis. Despite this setback, the independent data monitoring committee has recommended continuing the trial until the final analysis.

Last month, Wedbush emphasized the importance of the interim analysis, adding that if the data was robust enough to trigger the stopping rule, the trial would terminate, and topline data would be reported. However, following the recent update, Wedbush has lowered its price target from $5 to $4 but maintained its outperform rating.

Trilaciclib, also known as Cosela, was launched in 2021 and gained approval from the Food and Drug Administration (FDA) as a therapy to reduce chemotherapy-induced bone marrow suppression in adults who receive specific types of chemotherapy treatment. Wedbush mentioned the drug's impressive rapid vial volume growth of 19% in the fourth quarter of 2023 and highlighted potential further upside due to a decrease in platinum shortages.

Meanwhile, Needham has maintained its buy rating for G1 Therapeutics but decided to lower its price target from $14 to $12.

In conclusion, G1 Therapeutics is currently facing a challenging situation due to the recent cancer study update, which led to a significant decline in share value. However, the company remains committed to advancing their Phase 3 trial, and market experts have expressed varying sentiments regarding the future prospects of G1 Therapeutics.