Oppenheimer analysts provided a review on ESSA Pharma Inc. (NASDAQ:EPIX) following the company’s reported Q4 results yesterday, with EPS of ($0.14) vs. their estimate of ($0.26). The discrepancy was primarily due to a sharp quarter-over-quarter decrease in R&D expenses. According to the analysts, the company’s $167 million end-quarter cash position could sustain operations through 2025.

The analysts believe the story in 2023 will focus on combination data —especially full Phase 1 dose-escalation data from an ongoing study of EPI-7386 + enzalutamide, expected in mid-year or Q3.

Given Janssen’s recent decision to discontinue a JNJ-sponsored combo trial, the analysts expect to see abiraterone and apalutamide integrated into an Essa-sponsored trial next year, while darolutamide + ‘7386 enters a randomized investigator-sponsored trial.

The analysts cut their price target to $17 from $23 while reiterating their Outperform rating.