MORF - Morphic price target raised at Wells Fargo on positive data in inflammatory bowel disease

Following the announcement of positive Phase 1 interim results for MORF-057 in inflammatory bowel disease, Wells Fargo has more than doubled the price target of Morphic ([[MORF]] +132.3%) to $103.00 from $40.00 per share, a ~184.8% upside to the previous close.The analyst Yanan Zhu reiterated the overweight rating even though Morphic failed to exceed the consensus estimates for Q4 2020.The company ended 2020 with ~$228.3M of cash and equivalents with a ~3.4% YoY decline. However, the firm expects an adequate cash runway for Morphic until 2023 while positive MORF-057 data de-risks the oral small-molecule ahead of upcoming data readouts in 2021.Given the ‘clean’ single-dose safety profile and comparable receptor occupancy, the firm sees MORF-057 as ‘an oral ENTYVIO,’ referring to the integrin receptor antagonist from Takeda Pharmaceutical ([[TAK]] +1.2%).Analyst estimates $4B of annual sales for the treatment approved for moderate-to-severe ulcerative colitis and Crohn's disease in adults. Recently, a new ready-to-use self-injectable subcutaneous format of

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Morphic price target raised at Wells Fargo on positive data in inflammatory bowel disease