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On Wednesday, Stifel analysts maintained a bullish stance on Apogee (NASDAQ:APOG) Therapeutics Inc (NASDAQ:APGE), reiterating a Buy rating and a $95.00 price target for the company’s shares. The stock, currently trading at $35.70, has experienced a notable 9.4% decline over the past week, according to InvestingPro data. The optimism is largely tied to the potential of APG777, Apogee’s leading drug candidate for Atopic Dermatitis (AD).
Analysts at Stifel expressed confidence in APG777, highlighting its successful Phase 1 data which demonstrated clear target engagement and a half-life that supports quarterly or semi-annual maintenance dosing. The drug’s epitope overlaps with Eli Lilly (NYSE:LLY)’s Ebglyss (Lebrikizumab), which has already been approved for AD, and Stifel believes APG777’s clinical data is as good as, if not better than, Dupixent, another drug used to treat AD. This optimistic view aligns with the broader analyst consensus, as InvestingPro data shows analyst price targets ranging from $78 to $116 per share.
The upcoming Phase 2a induction data, expected this summer, is particularly significant as it will be the first in-patient readout for APG777. Analysts underscored the importance of this milestone, suggesting that efficacy on par with Dupixent or Lebrikizumab would not only further de-risk the drug’s development in AD but could also validate its use in a wider range of Th2-driven diseases.
Stifel’s report also delves into the conduct of AD studies, taking into account recent concerns about high placebo rates in such studies. After examining best practices, the firm has emerged with an increased confidence in the design and execution of Apogee’s Phase 2a trial.
In conclusion, Stifel stands firm in its belief that APG777 has a high probability of being an active drug, which is reflected in their sustained price target and rating. The analysts anticipate that the Phase 2a results could reinforce the drug’s position in the market and potentially expand its therapeutic applications beyond AD. While the company is not yet profitable, InvestingPro analysis reveals strong financial health indicators, including a robust current ratio of 18.55 and more cash than debt on its balance sheet. InvestingPro subscribers have access to over 7 additional key insights and detailed financial metrics that could help evaluate the investment potential of Apogee Therapeutics .
In other recent news, Apogee Therapeutics has entered into a manufacturing agreement with Samsung (KS:005930) Biologics for the production of its drug substance APG777. This agreement outlines the production and supply terms for APG777, which is currently in clinical development. Apogee has committed to purchasing minimum quantities of the product and may face an exit fee if it opts out of future commitments. In addition, TD Cowen has reiterated its Buy rating for Apogee Therapeutics, citing promising results from the company’s Phase I APG990 trials. Analyst Tyler Van Buren expressed confidence in Apogee’s ongoing clinical developments, particularly the Phase II study of APG777. Jefferies has also maintained a Buy rating on Apogee Therapeutics and raised its stock target to $86, following positive data from early-stage trials. Analyst Akash Tewari highlighted the potential of Apogee’s IL13/OX40L combination therapy, which is under trial for Atopic Dermatitis. These developments reflect Apogee’s strategic progress in its clinical programs and partnerships.
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