This Small-Cap Biotech Stock Just Hit A Near 22-Month High – But This Analyst Still Expects Another 56% Rally

• Zentalis selected the 400 mg dose of its drug to treat ovarian cancer after it showed a higher response rate than the 300 mg dose.
• The company expects to complete enrollment and report topline results from the trial by the end of 2026.
• This comes just two weeks after the FDA approved Cort’s ovarian cancer treatment months ahead of schedule.

Shares of Zentalis Pharmaceuticals (ZNTL) soared over 40% on Friday to their highest level since June 2024, after a bullish analyst call highlighted improved efficacy from a higher dose of its ovarian cancer drug while maintaining a comparable safety profile.

Guggenheim raised Zentalis’ price target to $10 from $6 and maintained a ‘Buy’ rating, according to The Fly. This implies a potential 56% upside from the stock’s current price. The firm cited the price target change to the increased confidence in the drug’s chances of success in platinum-resistant ovarian cancer.

Zentalis Picks 400 MG Dose For Future Trials

On Thursday, Zentalis announced encouraging interim results from its DENALI Part 2a study of Azenosertib, an oral therapy, in platinum-resistant ovarian cancer, supporting the drug’s further late-stage development.

The biotech firm selected the 400 mg once-daily dose (five days on, two days off) after it showed a clearly higher response rate than the 300 mg dose, while maintaining a similar safety profile. The 400 mg dose will now be used in the ongoing Phase 2 DENALI trial and the Phase 3 ASPENOVA study.

Zentalis expects to complete enrollment and report topline results from the DENALI Part 2 trial by the end of 2026.

FDA Approved Corcept’s Ovarian Cancer Drug Months Ahead Of PDUFA Date

The results are crucial, as they allow Zentalis to move towards potential regulatory approval. Just two weeks earlier, the U.S. Food and Drug Administration (FDA) approved Corcept Therapeutics’ (CORT) ovarian cancer treatment.

The approval covers adults with platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer who have previously received treatment.

Notably, the FDA’s decision came way ahead of schedule, as the therapy had been assigned a Prescription Drug User Fee Act (PDUFA) target date of July 11, 2026.

How Did Retail Traders React?

Retail sentiment for ZNTL on Stocktwits changed to ‘extremely bullish’ from ‘bullish,’ amid ‘extremely high’ message volumes.

One user expects the company’s valuation to explode seven to 10-fold if the drug is successful in monotherapy.

However, another user said the stock is overvalued, highlighting the company’s pipeline.

Year-to-date, the stock has shot up more than 370%.