Oric Pharmaceuticals Inc (NASDAQ:ORIC) shares fell 18.5% on Monday after Ipsen announced it was pulling Tazverik (tazemetostat) from every indication across all Ipsen markets.
The withdrawal by Ipsen follows reports of secondary hematologic malignancies identified in the Phase 3 SYMPHONY-1 trial, which investigated Tazverik in combination with lenalidomide plus rituximab for relapsed or refractory follicular lymphoma. An Independent Data Monitoring Committee concluded that, within this treatment regimen, the risks may outweigh potential benefits for patients.
Market analysts reacted to the news by weighing the potential implications for other drugs that target EZH2 biology, even where clinical contexts differ.
Analyst perspectives
Wolfe Research analyst Kalpit Patel, who retains a Peerperform rating on Oric, characterized Ipsen’s move as a negative readthrough for the broader EZH2 inhibitor landscape despite differences in clinical programs. Patel noted that Pfizer’s mevrometostat and Oric’s rinzimetostat are being developed in metastatic castration-resistant prostate cancer, while the safety signal with Tazverik emerged in follicular lymphoma. He added that investors are likely to be wary that any clear safety signal related to secondary hematologic malignancies could cast a prolonged shadow over other agents sharing EZH2 biology until it is clarified whether the issue is specific to the regimen or to the molecule.
Jones Trading analyst Soumit Roy, who maintains a Buy rating and a $25.00 price target, pointed out that Tazverik holds FDA approval for epithelioid sarcoma and for third-line or later follicular lymphoma patients with EZH2 mutations, and that the drug’s label already carries a warning for secondary malignancies.
Near-term outlook for Oric
Patel expects near-term weakness in Oric’s share price following the announcement, but he also suggested the stock may retain much of its recent gains in light of the upcoming Mevpro-1 readout anticipated around mid-year. According to the analyst, the stock’s next significant move will likely hinge on the Mevpro-1 results and on any subsequent decisions Pfizer makes regarding its development path.
Implications
- Investor sentiment toward EZH2-targeting therapies has cooled as a result of the SYMPHONY-1 findings.
- Oric’s near-term performance is expected to be sensitive to clinical readouts and peer decisions.
- Regulatory labels and safety warnings for EZH2 inhibitors are now in focus for market participants.