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On Thursday, BTIG initiated coverage on Oruka Therapeutics (NASDAQ:ORKA), a biopharmaceutical company currently valued at $396 million, with a Buy rating and a price target of $44.00. The target aligns with the broader analyst consensus, which ranges from $15 to $47 per share. According to InvestingPro data, analysts maintain a strong buy recommendation with an average rating of 1.14. The firm’s analyst highlighted the potential of Oruka’s product pipeline, which aims to enhance therapies for major diseases driven by interleukin-23 (IL-23) and interleukin-17 (IL-17).
Oruka Therapeutics is utilizing YTE modifications, a strategy consistent with other spinouts from Paragon Therapeutics, to focus on diseases where optimized pharmacokinetics (PK) can lead to improved adherence and convenience for patients, without sacrificing safety. The company’s lead development efforts are concentrated on psoriasis (PsO) and psoriatic arthritis (PsA), both of which are significant markets in the inflammation and immunology (I&I) sector.
The analyst expressed optimism regarding Oruka’s monoclonal antibodies (mAbs), ORKA-001 and ORKA-002, for their potential as monotherapies. Additionally, the combination therapy ORKA-021 could offer an ideal profile for induction and maintenance efficacy due to the complimentary nature of the targets. BTIG anticipates that even if these therapies achieve parity efficacy compared to approved treatments, they would still be positively received by healthcare payors.
Oruka Therapeutics is expected to release interim Phase 1 healthy volunteer (HV) data for ORKA-001 in the third quarter of 2025. BTIG foresees this data confirming a class-leading half-life for the therapy, which could be a significant catalyst for the company. The firm’s positive outlook is also supported by Oruka’s current enterprise value (EV) of approximately $230 million on a fully diluted (FD) basis. While the stock has seen a significant 11.84% return over the past week, InvestingPro analysis indicates the company’s overall financial health score is Fair at 2.28 out of 5, with additional insights available to subscribers.
In other recent news, Oruka Therapeutics has commenced a Phase 1 clinical trial for its new psoriasis treatment, ORKA-002. This trial will evaluate the safety, tolerability, and pharmacokinetics of the drug, which targets IL-17A and IL-17F, potentially allowing for less frequent dosing for psoriasis patients. The study involves healthy volunteers and aims to release interim data by the end of 2025. Meanwhile, Stifel has maintained its Buy rating on Oruka Therapeutics, with a price target of $49.00, following the company’s fourth-quarter update for 2024. The analysts at Stifel express a positive outlook, noting that Oruka is strategically positioned in the psoriasis market with its ORKA-001 product. ORKA-001 is expected to provide initial Phase 1 human data in the second half of 2025, with Phase 2 data anticipated in 2026. Financially, Oruka Therapeutics is well-positioned, holding approximately $394 million in cash and equivalents, which is expected to support the company’s operations through 2027.
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