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On Tuesday, Evercore ISI reiterated its positive stance on Vera Therapeutics (NASDAQ:VERA), maintaining an Outperform rating and a $75.00 price target. Currently trading at $27.75, the stock has significant upside potential according to analyst consensus, with targets ranging from $25 to $107. The firm’s analyst highlighted the company’s potential in providing a disease-modifying therapy for IgA Nephropathy (IgAN), despite recent market reactions to competitor developments. According to InvestingPro analysis, the stock is currently overvalued based on its proprietary Fair Value model.
Vera Therapeutics’ shares experienced a significant drop last Friday, with InvestingPro data showing a steep 19.3% decline over the past week, pushing the stock near its 52-week low of $25.99. Evercore ISI’s analyst pointed out that the market’s reaction did not align with their thesis for Vera Therapeutics, as they continue to support the company’s atacicept therapy due to its unique mechanism of action (MoA) and promising two-year data. InvestingPro subscribers have access to 13 additional key insights about VERA’s financial health and market position.
Atacicept, which targets both APRIL and BAFF pathways, is being developed as a convenient, once-weekly autoinjector. In contrast, Otsuka’s sibeprenlimab requires a larger volume for administration and comes in a prefilled syringe. The analyst emphasized atacicept’s ease of use and safety profile.
The efficacy of Otsuka’s sibeprenlimab remains a key unknown, especially as it transitions to an at-home setting and a slightly lower dose compared to previous phases. Evercore ISI anticipates that upcoming Phase 3 data for both sibeprenlimab and atacicept will be crucial for the stocks. They expect results to show a 30-40% reduction in proteinuria over standard care.
The ultimate decision by the FDA regarding at-home self-administration of these therapies will be significant, given that Phase 3 trials were conducted in a clinical setting. Evercore ISI also pointed out the substantial market opportunity for IgAN treatments, with a large patient population in the US, EU, and Japan, and a total addressable market valued at over $25 billion worldwide. With a market capitalization of $1.76 billion and a strong current ratio of 13.76, VERA maintains a solid financial position to pursue this opportunity. The analyst concluded that the market has the capacity for multiple successful players in the IgAN space.
In other recent news, Vera Therapeutics, a biotechnology company, is making significant strides in developing atacicept, a promising treatment for IgA nephropathy (IgAN). As per Cantor Fitzgerald, the data generated for atacicept indicates unprecedented disease-modifying activity. This optimism is rooted in the sustained kidney function stabilization observed in clinical trials. Vera Therapeutics is currently preparing for the Phase 3 ORIGIN readout of atacicept, expected in the second quarter of 2025. Cantor Fitzgerald maintains an Overweight rating on Vera Therapeutics stock, with a price target of $107.00.
In parallel, Vera Therapeutics faces a potential challenge from a rival drug, sibeprelimab, developed by Otsuka. As per analyst Liisa Bayko from Evercore ISI, sibeprelimab may enter the market before atacicept and could be seen as having an advantage due to its once-monthly self-administered prefilled syringe delivery method, compared to atacicept’s weekly autoinjector. The regulatory filing and approval for sibeprelimab are expected in 2025, with full approval data anticipated in the first half of 2026. These recent developments underline the competitive landscape Vera Therapeutics navigates as it progresses in its drug development.
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