Is Tyra Biosciences (TYRA) Undervalued As Phase 2 Data And Fresh Funding Reset Expectations?

Why Tyra Biosciences Is Back On Investors’ Radars

Tyra Biosciences (TYRA) has pulled investor focus after early Phase 2 SURF302 data on oral dabogratinib in FGFR3-altered bladder cancer and a completed US$400.0m follow-on equity offering supported by multiple co-lead underwriters.

Tyra Biosciences’ share price has eased in the near term, with the 90-day share price return down 15.81% and the year-to-date share price return down 4.55%, even though the 1-year total shareholder return of 100.86% points to strong longer run momentum as the SURF302 update and the US$400.0m follow-on equity raise reset expectations and perceived risk around its pipeline and funding.

Scan 16 high quality undiscovered gems to find other under-the-radar biotechs where fresh clinical data and recent capital raises are starting to reshape the investment story.

Tyra Biosciences now has fresh Phase 2 data, a US$400.0m cash injection and a share price that has already doubled over 12 months. Does that still leave enough upside in the risk reward for new money?

Most Popular Narrative: 47% Undervalued

Tyra Biosciences last closed at $25.57, while the most followed valuation narrative anchors on a fair value of $48.30. This assumes its FGFR3 program ultimately supports a much larger commercial footprint than the current share price implies.

The current valuation suggests that the market may not fully reflect the long term commercial potential of dabogratinib in a management framed $5 billion plus intermediate risk NMIBC market and additional FGFR3 indications in the share price.

See why 1 investors see Tyra Biosciences as 47% undervalued.

Result: Fair Value of $48.30 (UNDERVALUED)

Still, the Tyra Biosciences story could be knocked off course if SURF302 follow up data underwhelms again, or if the securities investigation escalates into costly litigation.

Find out about the key risks to this Tyra Biosciences narrative.

Another Way To Look At Tyra Biosciences’ Valuation

Analysts see Tyra Biosciences as undervalued on future earnings, yet the P/B ratio of roughly 5x is higher than both US biotech peers at 2.2x and the closer peer group at 3.4x. That richer multiple points to valuation risk if sentiment on dabogratinib cools again, or it may simply reflect the optionality investors are paying for.

See what the numbers say about this price in more detail in See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Sentiment around Tyra Biosciences is mixed, so treat that as a prompt to review the underlying numbers, risk flags and filings yourself without delay. To stress test your view against the downside, start with the 5 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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