Citi initiates Acumen Pharmaceuticals stock with buy rating

Published 17/06/2025, 11:06
Citi initiates Acumen Pharmaceuticals stock with buy rating

Citi initiated coverage on Acumen Pharmaceuticals , Inc. (NASDAQ:ABOS) with a buy rating and a $4.00 price target on Tuesday, joining a strong analyst consensus that sees significant upside potential, with price targets ranging from $4 to $11. The clinical-stage biotech company, currently valued at $69 million, is developing sabirnetug, a treatment for Alzheimer’s disease that selectively targets toxic amyloid beta oligomers.

The research firm classified the rating as "high risk" while noting that Acumen’s approach differs from competitors by specifically attacking toxic amyloid beta oligomers rather than other less-toxic species such as monomers, protofibrils, or mature plaques. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 8.02, though it’s currently burning through cash rapidly.

Citi pointed to promising Phase 1 data showing sabirnetug reduces amyloid plaques at a similar rate and magnitude to Biogen (NASDAQ:BIIB)’s Leqembi at comparable time points, with a safety profile that reportedly surpasses current market therapies. The company expects Phase 2 topline data in late 2026.

The firm expressed optimism about Acumen’s development of an additional subcutaneous formulation of sabirnetug and believes the large unmet need in Alzheimer’s disease creates room for multiple treatment options.

Citi acknowledged that Alzheimer’s disease represents a "high risk, high reward indication where many have failed before," but highlighted that Acumen shares are currently trading at $1.14 per share. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.

In other recent news, Acumen Pharmaceuticals reported a net loss of $28.8 million for the first quarter of 2025. The company’s research and development expenses rose to $25.3 million, reflecting ongoing investments in Alzheimer’s treatment development. Acumen holds $197.9 million in cash and marketable securities, expected to support operations into early 2027. The company successfully completed enrollment for its ALTITUDE AD phase two study ahead of schedule, signaling efficient operational strategies. While the company did not announce any mergers or acquisitions, its focus remains on advancing its Alzheimer’s treatment pipeline. Acumen’s CEO, Dan O’Connell, expressed confidence in their lead drug candidate, sabernatog, as a potential treatment for Alzheimer’s disease. The company is exploring innovative approaches, including subcutaneous administration pathways and potential open-label extensions of current studies. These developments come as the company aims to achieve top-line results for the ALTITUDE AD study by late 2026.

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