MORF - Morphic: Positive Phase 2a UC Trial Top M&A Candidate In 2023
2023-04-25 22:20:34 ET
Summary
- Positive Phase 2a data: MORF-057 demonstrated a statistically significant reduction in RHI score and a clinical remission rate of 25.7% (mMCS), supporting our bullish thesis on Morphic Therapeutic.
- Promising safety results: The absence of serious safety signals and an oral dosage form provide a compelling advantage over Takeda's IV ?4?7 integrin inhibitor, Entyvio.
- Potential M&A catalyst: Given recent acquisitions in the oral IBD space and upcoming patent expirations for blockbuster therapies, Morphic is well-positioned for a buyout at a premium.
- Maintaining buy rating: Our outlook is based on de-risked mechanism of action, oral administration advantages, the lucrative IBD market, and a strong balance sheet with a cash runway until 2026.
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Morphic: Positive Phase 2a UC Trial, Top M&A Candidate In 2023