Cantor Fitzgerald maintains Overweight on Tourmaline Bio stock

On Wednesday, Cantor Fitzgerald reiterated its Overweight rating on Tourmaline Bio (NASDAQ:TRML), underscoring the potential of the company’s pacibekitug program. Trading at $18.19, the stock has surged 19% in the past week, with analyst price targets ranging from $43 to $65. The research firm’s analyst emphasized the significance of the drug’s application for treating abdominal aortic aneurysm (AAA), which is currently not the main focus of investors.

The analyst highlighted the importance of the AAA indication for pacibekitug, considering it as one of the most substantial yet overlooked programs in the biotech sector. With a market capitalization of $466 million, Tourmaline maintains a strong balance sheet with more cash than debt. While the attention of many is on the drug’s use for atherosclerotic cardiovascular disease (ASCVD) or Thyroid Eye Disease (TED), the AAA indication presents a unique opportunity due to the strong link between the progression of AAA and IL-6, a cytokine involved in inflammation.

Tourmaline Bio’s development strategy for pacibekitug involves using CT monitoring, which is seen as a relatively straightforward path compared to other drug development processes. With millions of patients potentially eligible for treatment and no other approved pharmacotherapies available for AAA, the analyst suggests that pacibekitug could generate substantial revenues. According to InvestingPro data, the company is rapidly burning through cash, with its next earnings report due on May 8th, which could provide crucial updates on the program’s progress.

The research firm believes that pacibekitug has a "very plausible path" towards generating over $10 billion per year in revenue. This projection is based on the unmet medical need in the AAA patient population and the drug’s potential market size.

The continued Overweight rating indicates Cantor Fitzgerald’s confidence in Tourmaline Bio’s stock performance, particularly in light of the pacibekitug program’s prospects. The firm’s outlook suggests that the AAA indication could become a significant driver of value for the company in the future.

In other recent news, Tourmaline Bio has been the focus of multiple analyst updates and financial assessments. H.C. Wainwright increased its price target for the company to $50.00, following Tourmaline Bio’s announcement of a net loss of $22.2 million for the fourth quarter of 2024, which was slightly above estimates. Meanwhile, Truist Securities adjusted its price target to $63 from $74, maintaining a Buy rating, and highlighted the potential of Tourmaline Bio’s treatment, Pacibekitug, for ASCVD. Chardan Capital Markets also initiated coverage with a Buy rating and set a price target of $70.00, citing confidence in the company’s lead asset, Pacibekitug, which is in development for several diseases.

Tourmaline Bio’s ongoing Phase 2 TRANQUILITY trial is a significant focus, with data expected in the second quarter of 2025. Analysts from Truist Securities see this trial as a potential catalyst for the company’s stock, emphasizing the possible multi-billion dollar opportunity it represents. The TRANQUILITY trial aims to measure changes in hs-CRP levels, and early modeling suggests promising reductions in these levels. The market is also closely watching for data from the Phase 3 ZEUS trial, which could further inform the use of IL-6 inhibitors in treating ASCVD. These developments, along with the potential for strategic partnerships, have positioned Tourmaline Bio as a company of interest for investors.

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