2023-08-08 12:15:25 ET
Stifel, Guggenheim, Jefferies and Wedbush have initiated coverage of dermatology drug developer Apogee Therapeutics ( NASDAQ: APGE ) with buy ratings and price targets ranging from $29 to $40.
Stifel said in its note that Apogee's lead drug program APG777 aims to achieve an improved profile over Eli Lilly's ( LLY ) drug candidate lebrikizumab, while it's second program, APG808 strives for the same over Sanofi ( SNY ) and Regeneron's ( REGN ) blockbuster drug Dupixent. The drugs are intended to treat inflammatory disorders such as atopic dermatitis, or AD.
Stifel sees the market for anti-inflammatory drugs for conditions such as AD as "under-penetrated with meaningful white space opportunity for entrants with improved profiles." Stifel set its price target for the stock at $34.
Guggenheim said it viewed Apogee as a "unique opportunity" to invest in an early stage company with a key upcoming catalyst in 2024.
The investment bank said it believes a Phase 1 readout for APG777 expected mid-2024 could drive shares more than 100% higher from its current price if the data supports a dosing profile of every 12 weeks, which would be significantly less frequent than lebrikizumab. Guggenheim set a price target of $29.
Jefferies, meanwhile, said it believes APG777 can achieve dosing of every 8 to 12 weeks, which would be 4 to 11 weeks better and more convenient that other comparable therapies for AD. Jefferies set its price target at $29.
Wedbush was more bullish, setting a price target of $40 with a rating of outperform. Wedbush noted that injected biologics have faced challenges in penetrating the AD market, due in part to children being fearful of injections and other patients growing weary of repeated injections.
"We anticipate the long dosing interval for APG777 will translate into more convenient dosing, allowing APG777 to both compete with Dupixent and other biologics for existing market share, and to expand the pool of patients willing to initiate biologic therapy," Wedbush added.
Apogee raised $300M through an initial public offering in mid-July. Jefferies, TD Cowen, Stifel and Guggenheim Securities served as bookrunners on the deal, with Wedbush PacGrow as lead manager.
More on Apogee:
Apogee Therapeutics stock jumps 20% following upsized $300M IPO
Apogee Therapeutics upsizes proposed IPO to $250M from $100M
IPO Update: Apogee Therapeutics Proposes Terms For $250 Million IPO
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Stifel, Guggenheim, Jefferies, Wedbush start Apogee Therapeutics at buy