ACRS - Aclaris initiated as a buy at BTIG on potential of zunsemetinib for autoimmune conditions

• BTIG has initiated Aclaris Therapeutics ( NASDAQ: ACRS ) with a buy saying that the company's oral MK2 inhibitor, zunsemetinib, in phase 2 for several inflammatory conditions, could be attractive given black box warnings associated with JAK inhibitors.
• The firm has a $32 price target (103% upside based on Wednesday's close).
• Analyst Julian Harrison said that early data on zunsemetinib indicates that the candidate has efficacy similar to that of JAK inhibitors but without the safety concerns associated with that class.
• "MK2 has historically been more challenging to drug with off-target toxicity and attenuated efficacy over time encountered in prior programs," Harrison wrote. "Zunsemetinib looks well-designed to overcome these past shortcomings with its unprecedented target specificity."
• He added that zunsemetinib is poised to become a blockbuster drug given its relevance across several large total addressable markets in autoimmune diseases.
• Seeking Alpha's Quant Rating views Aclaris ( ACRS ) as a hold.

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