CG Oncology surges 7%; seen benefitting from J&J bladder cancer asset data

CG Oncology (NASDAQ:CGON) is up ~7% in Monday trading as the company’s candidate for a type of bladder cancer is seen as benefitting from new data on Johnson & Johnson’s (JNJ) TAR-200.

J&J is developing its asset and CG Oncology is developing cretostimogene for non-muscle invasive bladder cancer. TAR-200 is designed to provide targeted local release of gemcitabine into the bladder. Cretostimogene, which is in phase 3, is an oncolytic immunotherapy designed to replicate in retinoblastoma (Rb) gene pathway-defective cells seen in the majority of urothelial carcinomas and trigger an anti-tumor immune response, according to CG Oncology.

Phase 2b data on TAR-200, just presented at the European Society for Medical Oncology Congress, showed that 83.5% of patients in the TAR-200 monotherapy cohort achieved a complete response. In this group, 82% of patients maintained that response after a median follow-up of six months, and an estimated 12-month CR rate of 57.4%.

Data from two other cohorts, TAR-200 + the experimental cetrelimab, showed CR rates of, respectively, 67.9% and 46.4%.

In a recent note, Cantor’s Eric Schmidt, who rates CG Oncology a buy, said that the TAR-200 data would have implications for cretostimogene.

Cantor’s Louise Chen, who views J&J as overweight, said that the data indicates that TAR-200 as a monotherapy provides the best risk-benefit profile.