Metsera stock initiated at overweight by Wells Fargo on obesity drug

Published 20/06/2025, 10:54
Metsera stock initiated at overweight by Wells Fargo on obesity drug

Investing.com - Wells Fargo (NYSE:WFC) initiated coverage on Metsera Inc (NASDAQ:MTSR), a $2.91 billion biotech company trading at $27.71, with an overweight rating and a $65.00 price target on Friday. The price target aligns with the broader analyst consensus, which ranges from $38 to $62. InvestingPro data reveals 8 additional key insights about Metsera’s financial position.

The research firm highlighted Metsera’s differentiated peptide platform, which aims to address multiple challenges in the obesity treatment market. Wells Fargo noted that Metsera’s compounds could potentially offer simpler dosing regimens compared to existing treatments. The company maintains a strong financial health score of "GOOD" according to InvestingPro analysis, with a robust current ratio of 6.55 indicating solid short-term liquidity.

The company’s lead assets, MET-097i (GLP-1) and MET-233i (amylin), feature 18-19 day half-lives that could enable monthly dosing, according to Wells Fargo. This contrasts with current GLP-1 medications on the market that require weekly injections and up to five titration steps to reach target doses.

Wells Fargo emphasized that Metsera’s long half-life drugs may provide improved tolerability by enabling gradual buildup of drug exposure and avoiding fluctuations that increase adverse events. The firm pointed to high discontinuation rates from current GLP-1 treatments as a key challenge that Metsera’s approach could potentially address.

The research firm also noted Metsera’s scalability advantages, with more potent drugs at low doses, less frequent dosing requirements, and oral peptides with greater bioavailability, which Wells Fargo said are optimized for low API needs and achieving manufacturing scale.

In other recent news, Metsera Inc. has announced positive results from its Phase 1 clinical trial for MET-233i, an amylin analog aimed at treating obesity. The trial revealed up to an 8.4% mean placebo-subtracted weight loss at Day 36, with a 19-day half-life supporting the potential for once-monthly dosing. The study, which involved 80 participants, showed favorable tolerability with no severe or serious adverse events reported. Additionally, Cantor Fitzgerald has reiterated its Overweight rating on Metsera, citing the promising results of MET-233i and its potential to become a significant player in the obesity treatment market. The research firm highlighted the scarcity of high-quality amylin drugs and expressed strong confidence in MET-233i’s market potential. Metsera’s ongoing development includes advancing MET-233i both as a monotherapy and in combination with its GLP-1 receptor agonist candidate, MET-097i. Further trial data is anticipated by late 2025 or early 2026, which could present additional catalysts for the company’s valuation. The company’s proprietary HALO™ platform technology supports the development of MET-233i, aiming to offer patients a more convenient dosing schedule with substantial weight loss.

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