In Blackrock and Cohen's portfolio: why Wall Street believes in Janux biotech's 300% growth rate

Quotes of Janux Therapeutics - a small-cap developer of drugs against prostate cancer - have lost more than 65% over the past year. At the same time, the sharpest collapse occurred after the publication of data on one of the key candidates in the company's portfolio. Despite that, Janux shares are present in the portfolios of BlackRock and investor Steve Cohen, according to Form 13F filings as of the end of September. Wall Street analysts, for their part, recommend buying the company's securities, expecting them to rise more than 300%.

Janux Therapeutics (JANX), a biotech company with a market capitalization of about $840 million, was founded in 2017 by current President and CEO David Campbell, who holds a PhD in organic chemistry. Campbell has extensive experience leading drug discovery and development at biotech companies: at Sitari (celiac disease drugs), which partnered with GSK, and at Genentech partnered Afraxis (oncology) and biopharma company RQx (antibiotics).

Now, under Campbell's leadership, Janux is developing several immunotherapy drugs to treat cancer. Their peculiarity is that they direct immune cells directly to the tumor and are activated only in the affected tissues, which reduces the risk of damage to healthy cells.

In June 2021, Janux raised $193.8 million in a U.S. IPO, the offering was at the upper end of its implied price range. According to the 13F report as of September 30, 2025, BlackRock, the world's largest asset management company, has 3.7 million Janux shares in its portfolio with an aggregate stake value of approximately $51.5k. Steven Cohen's Point72 portfolio has 1.7 million shares with a market value of $23.6k.

In addition to its own developments, Janux works with partners: in December 2020, it entered into an agreement with Merck for scientific collaboration and exclusive licensing of two drug candidates. Details on indications and study design have not been disclosed. But in August 2025, Janux announced that the first patient had received a dose of one of the drugs, signaling the start of clinical trials.

In late January this year, Janux announced that it had entered into a collaboration agreement with Bristol Myers Squibb to develop a drug for solid tumors. The companies did not disclose the specific drug or the types of cancer the development targets. Janux is entitled to receive up to $50 million in upfront payments and about $800 million in additional milestone payments, as well as royalties on sales.

One of the most advanced drugs, Janux JANX007, targets a specific antigen (PSMA) characteristic of prostate cancer tumors. PSMA levels are highly elevated in prostate cancer, which is the most common type of cancer in men and the second most common type of cancer in the United States. The drug is being developed primarily for treatment in cases where standard hormone therapy is no longer effective.

Another drug in development, JANX008, is for the treatment of advanced tumors including colorectal, lung, pancreatic and breast cancer. According to the February 2024 study, JANX008 showed encouraging signs of antitumor activity in a variety of solid tumors with low toxicity.

JANX007 clinical trials began in the second half of 2022. Early clinical phase (phase 1a) results published in December 2024 showed a strong and sustained effect of JANX007 - for 63% of patients, the maximum PSA reduction reached 90% - in patients with advanced metastatic prostate cancer, as well as good tolerability. This allowed the company to select doses and move to expand the study into Phase 1b, with a focus on earlier lines of treatment. Wedbush analyst Robert Driscoll called the Janux results "unprecedented."

A year later, updated data from the ongoing Phase 1 clinical trial disappointed the market: on December 2, the day after publication, Janux securities lost 50% of their value. Although there were some positive aspects in the update, investors' fears seem justified, Barron's quotes Stifel analyst Stephen Willey as saying. Stifel cut its target price on the stock by 17% to $38, but maintained a Buy rating. According to Willey, Janux has presented only a limited amount of new patient data in 12 months, which still leaves many questions.

H.C. Wainwright analyst Swayampakula Ramakanth lowered his target price on the stock from $70 to $45 but maintained a Buy rating. He called the reported results "mixed" and noted that the drug is likely to remain a show-me format story until a more mature and complete data set emerges.

Analyst Josh Schimmer of Cantor is more optimistic: in a December 1, 2025 report (available from Oninvest), he noted that the study's results are comparable to Novartis' Pluvicto drug, particularly the PFS (time to disease progression) rate. "This is a good start given the success of Pluvicto," Schimmer believes.

Novartis' Pluvicto drug is already approved and used in metastatic castration-resistant prostate cancer prior to chemotherapy. Sales of Pluvicto were the driver of the company's sales growth in the third quarter of 2025: they totaled $564 million - 45% more than a year earlier.

Janux securities have fallen 70% in the past 12 months, with William Blair's team of analysts noting in a Dec. 26 report (available from Oninvest) that investor focus is on the drug JANX007. But while the latest clinical update disappointed the market, the analysts believe "the magnitude of the sell-off was an overreaction." William Blair believes that this creates an opportunity for a significant upside to quotes if positive clinical data for JANX007 is received in 2026.

Clear street's team of analysts, led by Kaveri Polman, note in their January 22 report (available at Oninvest) "that the stock's near-term performance will continue to be driven by the JANX007 program, and above all whether it can demonstrate a sustained effect." Clear street emphasizes that the company's second drug, JANX008, could face tolerability issues as data accumulates: "If JANX008 shows negative results and is not quickly replaced by another candidate, our valuation of the company will be severely reduced," the analysts wrote.

Janux stock now has 18 "buy" recommendations out of 20 Wall Street analysts, down from none three months ago. The average target price is $60.83. That means the stock could rise another 340% to its closing price on Feb. 3. The most optimistic target is $150.

Does not constitute individualized investment advice.