TVTX - Chinook draws Buy rating at Guggenheim citing multiple shots at renal market

• Chinook Therapeutics ( NASDAQ: KDNY ) gained ~4% Wednesday after Guggenheim launched its coverage with a Buy recommendation, noting its place in the emerging renal market as the kidney disease drug developer advances multiple candidates against IgA nephropathy (IgAN).
• The company is advancing its lead candidate, atrasentan, in a Phase 3 trial called ALIGN for IgAN with topline data expected in H2 2023, and BION-1301, another IgAN candidate is set to undergo Phase 3 development in mid-2023.
• “Chinook’s unique focus on renal diseases should position them well to obtain additional assets to develop a more diversified but still focused and efficient portfolio,” Guggenheim analyst Vamil Divan wrote.
• Citing favorable early data, Guggenheim projects atrasentan and BION-1301 to achieve over $1B annual peak sales, each with 75% and 60% probability of success (POS) rates and subject to success in pivotal studies, respectively.
• Seeking Alpha contributor, BiotechValley Insights issued a Buy rating on Chinook in February after Travere Therapeutics ( TVTX ) won FDA approval for rival IgAN therapy Filspari, which has a similar mechanism of action to atrasentan.

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