Apogee Therapeutics stock maintains Buy rating at Citi after positive data

Investing.com - Citi maintained its Buy rating and $95.00 price target on Apogee (NASDAQ:APOG) Therapeutics Inc (NASDAQ:APGE), a $2.77 billion market cap biotech company, following the release of Phase 2a data for its atopic dermatitis treatment APG777. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with analysts unanimously rating it as a "Strong Buy."

The research firm described the trial results as a "major de-risking event" for the program, with APG777 demonstrating "impressive efficacy" by achieving a placebo-adjusted EASI-75 score of 42.5% while maintaining a good safety profile.

While some investors expressed concerns about higher conjunctivitis rates of approximately 18%, Citi noted these rates are comparable to those seen with competing treatments Dupixent (9-10% in Phase 2b; ~20% in real-world evidence) and Ebglyss (approximately 10% in Phase 2; ~14% in real-world evidence).

Citi views the overall Phase 2a data as "very compelling," highlighting the potential for quarterly dosing as a highly differentiated feature in the market, and recommends buying the stock on recent weakness.

The firm forecasts combined APG777 sales to reach $2.5 billion by 2032, slightly below the consensus estimate of $2.6 billion.

In other recent news, Apogee Therapeutics has announced positive results from its Phase 2 APEX clinical trial of APG777, an experimental treatment for atopic dermatitis. The company reported that the drug met all primary and key secondary endpoints, demonstrating a 71.0% reduction in the Eczema Area Severity Index (EASI) score at Week 16. This result was significantly higher compared to 33.8% for the placebo group. The trial involved 123 adult patients, and the drug showed a promising EASI-75 response rate of 66.9% versus 24.6% for placebo. Apogee noted that APG777 was well tolerated, with a safety profile consistent with similar treatments. Guggenheim reiterated its Buy rating on Apogee, citing the upcoming Phase 2 data as a critical milestone. Stifel and TD Cowen also maintained Buy ratings, expressing confidence in the drug’s potential efficacy and market impact. Apogee plans to accelerate the timeline for further trials, with additional data expected in mid-2026.

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