GNFT - UBS starts Cymabay at buy expecting positive Phase 3 data for seladelpar

2023-08-14 16:31:43 ET

UBS has initiated coverage of Cymabay Therapeutics ( NASDAQ: CBAY ) with a buy rating, stating it sees a Phase 3 study for the company’s drug seladelpar in the treatment of primary biliary cholangitis, or PBC, yielding positive data.

UBS said it expects the study to show seladelpar had deeper efficacy in Phase 3 testing versus rival products by Intercept Pharmaceuticals ( ICPT ) and Genfit ( GNFT )/Ipsen. It also thinks seladelpar will show “meaningful” and statistically significant improvement in itching, a PBC symptom that impacts quality of life.

“We think that improvements in itch could dramatically expand the 2L PBC market opportunity, which we think is still underappreciated,” the analysts wrote in their note.

UBS added that it believes seladelpar could take market share from obeticholic acid and be “highly competitive” against Genfit/Ipsen’s elafibranor.

The bank said it sees shares trading higher on positive Phase 3 data, expected in late September, with regulatory approval and a “stronger launch than anticipated as further medium-term upside drivers for this soon to be commercial name.”

UBS set a price target of $18 for the stock.

More on Cymabay:

CymaBay Therapeutics, Inc. ( CBAY ) Q2 2023 Earnings Call Transcript

CymaBay Therapeutics GAAP EPS of -$0.01 beats by $0.22, revenue of $31.01M

Genfit gains as Phase 3 trial for liver disease candidate succeeds (update)

CymaBay's Seladelpar: An Exceptional PPAR Agonist Candidate For PBC

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