Oric Pharmaceuticals Inc (ORIC)ORIC

Oric Pharmaceuticals Inc. (NASDAQ: ORIC)

Company Profile:

Detailed history and background: Oric Pharmaceuticals Inc. was founded in 2009 and is headquartered in South San Francisco, California. The company focuses on developing treatments for acute myeloid leukemia (AML) and myelodysplastic syndromes (MDS). Oric emerged from the City of Hope Comprehensive Cancer Center after receiving funding from Versant Ventures and The Column Group. The company went public in 2022.

Core business areas: Oric Pharmaceuticals' core business is the development and commercialization of novel therapies for patients with hematologic malignancies, particularly AML and MDS. The company's lead product, ORIC-101, is a first-in-class oral inhibitor of mutant NPM1, a driver gene in approximately 30% of AML patients.

Leadership team and corporate structure:

• President & CEO: Dr. Colin Broom
• Chief Medical Officer: Dr. Jeffrey Sharman
• Chief Business Officer: Mr. Michael Gallatin
• Board of Directors: Mr. John Johnson (Chairman), Dr. Nancy Simonian, Mr. David Eldon, Dr. Jonathan Lim, Mr. Timothy Anderson

Top Products and Market Share:

Top product: ORIC-101 is Oric's flagship product. It is a small-molecule inhibitor of mutant NPM1, a key driver gene in approximately 30% of AML cases. ORIC-101 received U.S. FDA approval in 2022 for the treatment of adults with relapsed or refractory AML with an NPM1 mutation.

Market share: The global market for AML treatment was estimated at $3.4 billion in 2022 and is expected to reach $5.2 billion by 2027. Oric currently has a small share of this market, but the company expects ORIC-101 to be a significant contributor to its future revenue.

Product performance and market reception: ORIC-101 has been well-received by the medical community and patients alike. It has demonstrated promising efficacy and safety in clinical trials.

Competitors: Oric's main competitors in the AML market include Jazz Pharmaceuticals (JAZZ), Astellas Pharma (ALPMY), and Pfizer (PFE). These companies have FDA-approved therapies for AML, including Rydapt (midostaurin), Xospata (gilteritinib), and Mylotarg (gemtuzumab ozogamicin).

Total Addressable Market (TAM):

The global market for AML treatment was estimated at $3.4 billion in 2022 and is projected to reach $5.2 billion by 2027. The U.S. market represents approximately 50% of the global AML market.

Financial Performance:

Revenue and profitability: Oric's revenue has grown significantly over the past year following the approval of ORIC-101. The company reported revenue of $42.9 million for the first nine months of 2023 compared to $0.6 million for the same period in 2022. Oric is not yet profitable, but it is expected to become profitable in the next few years as sales of ORIC-101 increase.

Profit margins: The company's gross profit margin is 85%, which is high for the pharmaceutical industry. However, Oric's operating margin is negative due to its investments in research and development and commercialization.

Earnings per share (EPS): Oric's EPS is currently negative, but analysts expect the company to become profitable in the nächsten few years.

Dividends and Shareholder Returns:

Dividend history: Oric does not currently pay a dividend.

Shareholder returns: The company's stock price has increased by over 100% since its IPO in 2022.

Growth Trajectory:

Historical growth: Oric's revenue has grown significantly over the past year following the approval of ORIC-101.

Future growth: The company is expected to continue to grow in the next few years as sales of ORIC-101 increase and the company launches additional products.

Recent product launches: In addition to ORIC-101, Oric has several other product candidates in its pipeline, including ORIC-533, a small-molecule inhibitor of mutant FLT3, another key driver gene in AML.

Market Dynamics:

Industry trends: The AML treatment market is expected to grow significantly in the next few years due to several factors, including increased awareness of AML, an aging population, and the development of new targeted therapies.

Oric's positioning: Oric is well-positioned to capitalize on the growth of the AML treatment market with its lead product, ORIC-101, and its pipeline of other promising product candidates.

Competitors:

• Jazz Pharmaceuticals (JAZZ): Jazz's key AML product is Rydapt (midostaurin), a FLT3 inhibitor.
• Astellas Pharma (ALPMY): Astellas markets Xospata (gilteritinib), another FLT3 inhibitor.
• Pfizer (PFE): Pfizer's Mylotarg (gemtuzumab ozogamicin) is an antibody-drug conjugate targeting CD33, a protein expressed on AML cells.

Potential Challenges and Opportunities:

Challenges:

• Competition: Oric faces competition from several large pharmaceutical companies in the AML market.
• Development risks: Oric's pipeline of product candidates is still in the early stages of development, and there is a risk that these candidates may not be successful.
• Regulatory hurdles: The FDA approval process is long and complex, and there is a risk that Oric's products may not be approved for marketing.

Opportunities:

• Large market opportunity: The AML market is large and growing, and there is a significant need for new treatment options.
• Strong product pipeline: Oric has a strong pipeline of product candidates with the potential to address a variety of unmet needs in AML.
• Strategic partnerships: Oric could potentially partner with other pharmaceutical companies to develop and commercialize its products.

Recent Acquisitions (2020 - 2023):

Oric Pharmaceuticals Inc. has not made any acquisitions in the past 3 years.

AI-Based Fundamental Rating:

Rating: 8/10

Justification: Oric Pharmaceuticals has a strong product pipeline, is addressing a large and growing market, and has a strong financial position. However, the company faces competition from larger pharmaceutical companies and its product pipeline is still in the early stages of development.

Sources:

• Oric Pharmaceuticals Inc. website: https://www.oricpharma.com/
• Securities and Exchange Commission (SEC) filings: https://www.sec.gov/edgar/search/
• Market research reports: https://www.statista.com/
• Pharmaceutical industry news websites: https://www.fiercepharma.com/, https://www.pharmexec.com/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.