Barclays initiates Oruka Therapeutics stock with Overweight rating

Investing.com - Barclays initiated coverage on Oruka Therapeutics (NASDAQ:ORKA), a $1.18 billion market cap biotech company, with an Overweight rating and a $48.00 price target on Monday. The stock has shown remarkable momentum, gaining over 218% in the past six months. According to InvestingPro data, analyst targets range from $26 to $56, suggesting significant potential upside.

The research firm highlighted Oruka’s focus on developing long-acting antibodies for treating autoimmune and inflammatory diseases, particularly psoriasis.

Oruka’s lead asset, ORKA-001, is an IL-23 p19 targeting antibody currently in Phase 2 trials for potential use in psoriasis, with data expected in the second half of 2026 according to company guidance.

The company’s second candidate, ORKA-002, is a long-acting antibody targeting IL-17A/F currently in Phase 1 trials, with healthy volunteer pharmacokinetic data anticipated by year-end 2025.

Barclays noted that Oruka’s strategy of developing longer-acting biologics for inflammatory indications targets markets representing over $26 billion in global sales in 2024, positioning the company for potential upside with successful development of its pipeline candidates.

In other recent news, Oruka Therapeutics has reported significant developments surrounding its ORKA-001 antibody treatment. The company announced positive interim results from its Phase 1 trial, revealing that ORKA-001 demonstrated a half-life of approximately 100 days, which could potentially allow for once-yearly dosing for plaque psoriasis patients. This finding exceeds previous expectations and presents a possible advantage over current treatments requiring more frequent administration. Additionally, Oruka Therapeutics has raised approximately $180 million in a private investment in public equity financing to further its biologics development for chronic skin diseases, with Viking Global Investors leading the round. Analyst firm BTIG has raised its price target for Oruka Therapeutics to $56, maintaining a Buy rating based on the promising drug data. Clear Street also initiated coverage on Oruka Therapeutics with a Buy rating and a $46 price target, noting the company’s development of next-generation analogs of established psoriasis treatments. These recent developments underscore Oruka Therapeutics’ ongoing efforts to advance its treatment options in the field of biotechnology.

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