TAK - Ventyx draws bullish views at Wells Fargo on near-term catalysts

2023-03-21 09:28:28 ET

• Ventyx Biosciences ( NASDAQ: VTYX ) traded higher pre-market Tuesday after Wells Fargo initiated its coverage with an Overweight recommendation citing an attractive entry point ahead of multiple catalysts over the next 12 – 18 months.
• The company is advancing its tyrosine kinase 2 (TYK2) inhibitor VTX958 in plaque psoriasis, Crohn's disease, and psoriatic arthritis, with topline data expected in Q4 2023.
• Meanwhile, a topline readout is expected in H2 2023 from a Phase 2 trial for VTX002, a sphingosine-1-phosphate receptor modulator, in ulcerative colitis.
• Based on deal comps for Pfizer's ( PFE ) acquisition of Arvinas' ( ARVN ) S1PR modulator Etrasimod and Takeda's ( TAK ) acquisition of TYK2 inhibitor NDI-034858 from Nimbus Therapeutics, Wells Fargo analyst Derek Archila argues that VTYX could reach $153 if both readouts turn positive.
• However, citing a probability-weighted NPV analysis, Archila issues a $77 per share target on the stock.
• His bullish views on VTX958 are based on mid-stage data Takeda ( TAK ) disclosed for its TYK2 inhibitor TAK-279 in plaque psoriasis last week,

For further details see: