Jefferies maintains hold on BioAge Labs with $4 target

On Thursday, Jefferies analyst Roger Song reaffirmed a Hold rating and a $4.00 price target on BioAge Labs Inc (NASDAQ:BIOA), focusing on the company’s progress with its central nervous system (CNS) penetrating oral small-molecule NLRP3 inhibitor, BGE-102. The treatment is expected to enter clinical trials by mid-year, targeting obesity with potential applications in other indications such as neurological and metabolic disorders. According to InvestingPro data, BIOA currently trades at $3.98, with analysts’ targets ranging from $4.00 to $10.00, suggesting potential upside. While the company maintains strong liquidity with a current ratio of 13.68, it faces challenges with profitability, as highlighted by several key metrics available on InvestingPro.

BioAge Labs has delivered updates on BGE-102, including its rationale and preclinical profiles. According to Song, the data appears promising and competitive within the industry, particularly due to the heightened interest from small to mid-size and large cap biotech companies. Preclinical data suggests that BGE-102 may offer comparable or superior weight loss as a monotherapy in diet-induced obesity (DIO) models and could potentially double weight loss when used in combination with other treatments. InvestingPro analysis reveals that BIOA holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly. Get access to the full financial health analysis and 8 additional ProTips with an InvestingPro subscription.

The analyst highlighted BGE-102’s potential efficacy advantages, such as its best-in-class potency with a 2 nM IC90 and its ability to penetrate the brain, with a brain-to-plasma ratio of approximately 1. These factors could position BGE-102 favorably against other NLRP3/inflammasome targeting competitors, including VTX3232, which is currently in a Phase 2 obesity study with topline results expected in the second half of 2025, and NT-0796, which is initiating a Phase 2 obesity study in the second quarter of 2025.

Song noted that while most NLRP3 targeted mechanisms of action (MOAs) in development are intended for use with incretin add-on therapy, BGE-102 might prove viable as a monotherapy depending on the degree of weight loss achieved and its gastrointestinal tolerability and safety profile. The potential for shorter study durations and maintenance treatments could offer additional advantages.

The analyst concluded by suggesting that more clinical data on NLRP3 targeted therapies, including BGE-102, expected in the second half of 2025 and into 2026, will shed light on whether NLRP3 could become the next significant target in obesity treatment, akin to amylin. The stock has experienced significant volatility, with a 78.8% decline over the past six months. Investors seeking deeper insights can access comprehensive valuation models and detailed financial analysis through InvestingPro’s exclusive research reports, available for over 1,400 US stocks including BIOA.

In other recent news, BioAge Labs, Inc. has announced the completion of Investigational New Drug (IND)-enabling studies for BGE-102, a novel small-molecule NLRP3 inhibitor. The company is preparing to submit an IND application in mid-2025, with plans to initiate Phase 1 clinical trials by the end of the year. BGE-102 has demonstrated promising results in preclinical obesity models, showing significant weight loss both as a standalone treatment and in combination with GLP-1 receptor agonists. The compound is designed to inhibit the NLRP3 inflammasome, which is linked to inflammation and age-related diseases such as obesity. Preclinical studies indicated that BGE-102 could induce weight loss in obese mice, with effects similar to the drug semaglutide, and enhanced results when used together. The safety profile of BGE-102 appears favorable, with no adverse effects observed in preclinical assessments. BioAge is planning a Phase 1b proof-of-concept study in obesity for the second half of 2026. The company’s pipeline also includes other preclinical programs derived from its proprietary discovery platform.

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