DICE - DICE Therapeutics equalweight at Wells Fargo on lack of catalysts

2023-05-24 13:50:08 ET

Wells Fargo has initiated DICE Therapeutics ( NASDAQ: DICE ) at equalweight saying that the company doesn't have any near-term catalysts and upcoming competitor datasets may weigh on shares.

The firm has a $38 price target (~11% upside based on Tuesday's close).

Analyst Derek Archila said that DICE ( DICE ) lacks catalysts over the next six to nine months. He added that while early-stage data on lead candidate DC-806 for psoriasis and other IL-17 mediated chronic immunology indications is promising, phase 2b data likely won't be available until early 2H 2024 at the soonest.

Unlike many other treatments for autoimmune and inflammatory diseases, DC-806 is an oral drug.

Archila noted that DC-806 could do well if it achieves efficacy and safety on par with biologic medicines. He projects adjusted peak revenue of ~$2.8B.

He added that there will be data readouts upcoming for IL-17 biologics from Acelyrn's ( SLRN ) izokibep and Moonlake Immunotheraopeutics's ( MLTX ) sonelokimab.

"While we don't expect DC-806 to directly compete with other [mechanisms of action] in most mkts and oral drugs are certainly preferred to injections, we think pos data from the [two] agents may cap DICE shares' near-term upside absent the results of DC-806's Ph2b trial," Archila wrote.

More on DICE Therapeutics

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DICE Therapeutics: Risks To Reversal Rally Noted In Market Data (Technical Analysis)

DICE Therapeutics: Oral Drug Of Proven IL-17 Target

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