KDNY - Chinook Therapeutics a new buy at Piper on lead asset atrasentan for kidney disease

2023-03-06 14:19:25 ET

• Piper Sandler has initiated Chinook Therapeutics ( NASDAQ: KDNY ) with a buy rating citing the potential of atrasentan, which is in phase 3, for IgA nephropathy.
• The firm has a price target of $41 (~73% upside based on Friday's close).

• Analyst Yasmeen Rahimi said that atrasentan has a low biological risk following the recent approval of Travere Therapeutics Filspari (sparsentan) . She added that atrasentan has a better safety profile that could boost adoption, and is significantly derisked by the phase 2 AFFINITY trial.

• Rahimi gives atrasentan a 75% probability of success given the AFFINITY results, affirmation of the drug's mechanism of action with the Filspari approval, safety profile, and "efficacy when used on top of SGLT2 inhibitors could provide a key point of differentiation."

• While Rahimi admits that there are many candidates in development for IgA nephropathy, atrasentan is differentiated based on its proteinuria efficacy and safety profile.

• Read why Seeking Alpha contributor Stephen Ayers says that Chinook ( KDNY ) is a buy.

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