TAK - Aeglea initiated with Buy at Stifel citing potential in IBD space
2023-07-25 15:23:05 ET
Aeglea BioTherapeutics ( NASDAQ: AGLE ) traded higher on Tuesday after Stifel launched its coverage with a Buy recommendation citing its potential against inflammatory bowel disorders, ulcerative colitis, and Crohn's disease.
Despite rising competition among developers, opportunities exist within the market for UC and CD, the analyst Alex Thompson argues.
With a $0.90 per share target on the stock, the analyst highlights Aeglea’s ( AGLE ) IBD candidates SPY001 and SPY002 added via its recent Spyre acquisition .
According to the analyst, the company's cash runway extends into 2026 following the buyout and a private placement.
With supportive preclinical data in hand, the company expects to report pharmacokinetic data for SPY001 and SPY002 by the year-end of 2024 and during 2025, respectively, Thompson added.
The lead candidate, SPY001, is designed to outcompete Takeda’s ( TAK ) "mega-blockbuster" Entyvio, which generated more than $5B revenue globally in 2022 and, according to Stifel, is the most widely prescribed first-line biologic in the U.S.
"SPY001 was designed to improve upon Entyvio with the potential for superior induction efficacy via increased exposure and a better subcu profile," the analyst argued.
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Aeglea initiated with Buy at Stifel citing potential in IBD space