Jefferies initiates Biomea Fusion stock with Buy rating on diabetes drug potential

Published 28/08/2025, 11:18
Jefferies initiates Biomea Fusion stock with Buy rating on diabetes drug potential

Investing.com - Jefferies initiated coverage on Biomea Fusion Inc. (NASDAQ:BMEA) with a Buy rating and a $5.00 price target on Thursday. The stock, currently trading at $1.86, has seen a challenging year with a 75% decline from its 52-week high of $13.07. According to InvestingPro data, analyst targets range from $3 to $16, suggesting significant potential upside.

The research firm highlighted Biomea’s clinical-stage focus on developing oral small molecule medicines for diabetes and obesity treatments.

Biomea’s lead asset, icovamenib, a covalent menin inhibitor, is currently under investigation for both Type 2 Diabetes and Type 1 Diabetes, with Phase 2 data updates expected in the second half of 2025.

Jefferies noted that icovamenib’s mechanism of action could potentially address a fundamental driver of diabetes.

The firm projects peak adjusted revenues of approximately $750 million for Biomea Fusion , primarily driven by the company’s Type 2 Diabetes franchise. For deeper insights into BMEA’s financial health and growth potential, including 11 additional ProTips and comprehensive valuation metrics, check out the full research report on InvestingPro.

In other recent news, Biomea Fusion, Inc. has announced the commencement of an underwritten public offering of its common stock and accompanying warrants. This offering includes options for pre-funded warrants in lieu of common stock for certain investors, with a 30-day option for underwriters to purchase up to an additional 15% of the shares and pre-funded warrants. In related developments, H.C. Wainwright reiterated its Buy rating for Biomea Fusion, setting a price target of $18.00 following the presentation of initial data from the company’s Phase 1 COVALENT-103 trial. The trial, which evaluated BMF-500 in patients with relapsed/refractory acute leukemia, showed favorable tolerability and positive responses. Additionally, Biomea Fusion reported updated preliminary data from the same trial, noting sustained responses in heavily pretreated leukemia patients. The company also announced the appointment of Julianne Averill to its Board of Directors, effective July 22, 2025, replacing Bihua Chen.

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