Guggenheim initiates Forte Biosciences stock with Buy rating on autoimmune therapy potential

Published 18/08/2025, 12:00
Guggenheim initiates Forte Biosciences stock with Buy rating on autoimmune therapy potential

Investing.com - Guggenheim has initiated coverage on Forte Biosciences Inc. (NASDAQ:FBRX) with a Buy rating and a $75.00 price target. The stock, currently trading at $11.57, has shown strong momentum with a 10% gain in the past week. According to InvestingPro data, analyst targets range from $19 to $61, with a unanimous Buy consensus.

The research firm’s investment thesis centers on the potential of CD122-blockade as a therapeutic approach for several severe autoimmune diseases, including Celiac Disease, Vitiligo, Alopecia Areata, and Type 1 Diabetes.

Forte’s sole asset, FB102, is an anti-CD122 monoclonal antibody that blocks IL-2 and IL-15 signaling on pathogenic NK and T-cells while sparing regulatory T-cells. The company recently completed a randomized-controlled Phase Ib study with 32 Celiac patients, demonstrating robust clinical efficacy across multiple endpoints.

Forte expects to release data from its Phase II study in Celiac Disease in 2026, with additional readouts from studies in Vitiligo and Alopecia Areata also expected that year.

Guggenheim estimates FB102 could achieve approximately $1.1 billion in risk-adjusted global peak sales across these three autoimmune diseases if approved, with risk-unadjusted potential of approximately $2.6 billion.

In other recent news, Forte Biosciences announced the initiation of a public offering of common stock shares and pre-funded warrants, aimed at raising capital for the company. The offering includes a 30-day option for underwriters to purchase an additional 15% of the shares and underlying shares of the pre-funded warrants. This development follows the company’s report of positive results from a Phase 1b trial of its lead drug candidate, FB102, for celiac disease. The trial, which involved 32 participants, showed statistically significant benefits for those receiving FB102 compared to a placebo. Additionally, Forte Biosciences held its annual stockholders’ meeting, where Class II directors Richard Vincent, Shiv Kapoor, and David Gryska were elected. The meeting also included the ratification of the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025. These directors will serve until the 2028 annual meeting or until their successors are elected. These recent developments highlight Forte Biosciences’ ongoing activities in both its clinical and corporate sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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