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On Tuesday, Citi analyst Samantha Semenkow adjusted the price target for Acelyrin Inc (NASDAQ:SLRN) to $3.00, a decrease from the previous $6.00, while maintaining a Neutral rating on the company's shares.
This revision follows Acelyrin's recent presentation of Phase 1b/2 dose-finding efficacy and safety data for lonigutamab, a subcutaneous anti-IGF1R treatment for Thyroid Eye Disease (TED) patients, and the unveiling of the Phase 3 LONGITUDE program's trial design.
The company's shares have shown weakness following the announcement of the Phase 3 dosing regimen, which will be every two weeks (Q2W), as opposed to a competitor's program that offers dosing every four or eight weeks (Q4W/Q8W). The market's reaction is partly due to the uncertainty about the efficacy expectations for a Phase 3 dose that was not tested in the Phase 1b/2 study.
Despite the concerns, the safety profile of lonigutamab appeared clean, potentially providing a competitive edge, as no issues such as hearing impairment, hyperglycemia, or elevation of circulating IGF1 were reported. Furthermore, the Phase 3 study design includes continued dosing for longer than 24 weeks, which could potentially offer a commercial advantage.
However, Citi anticipates that several factors will continue to pressure Acelyrin's stock. These include the absence of near-term catalysts until the Phase 3 lonigutamab data is available in the second half of 2026, the significant capital required to conduct two Phase 3 TED trials, and competitive concerns within the market.
In conclusion, the new price target of $3.00 reflects a $3 decrease from the previous target, with Citi reiterating a Neutral/High Risk rating on Acelyrin stock. The firm's analysis suggests that while there is value in continuing the development of lonigutamab, the combination of anticipated heavy investment, competitive landscape, and a lack of immediate catalysts may continue to impact the share price.
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