Clear Street initiates Oruka Therapeutics stock with Buy rating on psoriasis drugs

Published 20/08/2025, 22:22
Clear Street initiates Oruka Therapeutics stock with Buy rating on psoriasis drugs

Investing.com - Clear Street initiated coverage on Oruka Therapeutics (NASDAQ:ORKA) with a Buy rating and a $46.00 price target on Wednesday. The target represents significant upside potential for the $535.55 million market cap company, whose analyst price targets currently range from $15 to $47.

The research firm highlighted ORKA’s development of next-generation analogs of established psoriasis treatments Skyrizi and Bimzelx, which currently generate $11.7 billion and $0.7 billion in 2024 run-rates, respectively.

Clear Street noted that ORKA’s candidates, ORKA-001 and ORKA-002, leverage half-life-extending YTE mutations that enable less frequent dosing while maintaining comparable efficacy to existing treatments, a feature expected to be favored by healthcare payers in the $25 billion-plus psoriasis market.

The firm pointed to ORKA-001’s higher dosing of 300 mg compared to Skyrizi’s 150 mg, suggesting potential for superior efficacy and customized treatment regimens that could support premium pricing.

Beyond psoriasis, Clear Street identified expansion opportunities for ORKA-002 in psoriatic arthritis, hidradenitis suppurativa, and axial spondyloarthritis, with catalysts beginning in September and a cash runway extending through 2027.

In other recent news, Oruka Therapeutics has received FDA clearance to proceed with its Phase 2a trial for ORKA-001, a treatment for moderate-to-severe psoriasis. The trial, named EVERLAST-A, will evaluate the long-acting anti-IL-23p19 antibody in approximately 80 patients, with the primary endpoint being complete skin clearance at Week 16. Following this development, several analyst firms have reiterated their positive outlook on Oruka Therapeutics. H.C. Wainwright maintained its Buy rating with a $45 price target, and Stifel also reiterated its Buy rating, setting a $47 price target. BTIG continues to support Oruka with a Buy rating and a $44 price target, citing strong revenue results from competing psoriasis treatments as positive indicators for Oruka’s pipeline. The FDA clearance marks a significant step forward for the company, as trial sites are already open and enrolling patients. Data from this trial is expected to be available in the second half of 2026.

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