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Stifel maintains Buy on Apogee Therapeutics with $95 target

EditorLina Guerrero
Published 12/11/2024, 20:28
APGE
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On Tuesday, Stifel reiterated its Buy rating on Apogee (NASDAQ:APOG) Therapeutics Inc (NASDAQ:APGE), maintaining a $95.00 price target for the company's stock. The firm's positive stance follows Apogee's third-quarter 2024 update, highlighting the ongoing development of its drug pipeline.

The analyst from Stifel emphasized the significant potential of APG777, Apogee's drug candidate for Atopic Dermatitis (AD), which is expected to deliver Phase 2 data in the second half of 2025. According to the analyst, investor interest has been primarily centered on this particular drug's prospects. However, the breadth of Apogee's entire pipeline is believed to be largely underappreciated.

In addition to APG777, Apogee is also progressing with its second program, APG808, an IL-4Ra inhibitor. The company is set to release Phase 1 data for APG808 in the fourth quarter of 2024. Furthermore, a broader Research & Development day is scheduled for December 2, which could provide further insights into the company's pipeline and upcoming milestones.

The year 2025 is expected to be eventful for Apogee Therapeutics, with multiple catalysts on the horizon. Not only is the Phase 2 data for APG777 anticipated, but initial Proof of Concept (PoC) data for APG808 in Asthma is also on the agenda. Additionally, the initiation of a combination study involving APG777 and APG990 (OX40L) is planned.

The analyst also noted that upcoming product launches in the same therapeutic areas, such as Dupixent for Chronic Obstructive Pulmonary Disease (COPD) and Ebglyss for Atopic Dermatitis (AD), could provide positive readthroughs for Apogee's pipeline. These developments are seen as potential drivers for the company's stock momentum as it heads into the next year.

In other recent news, Apogee Therapeutics has reported encouraging results from its ongoing Phase 1 clinical trial of APG777, a treatment for moderate-to-severe atopic dermatitis. The trial data, presented at the American College of Allergy, Asthma & Immunology's Annual Scientific Meeting, indicated a favorable safety profile and sustained biomarker inhibition for up to nine months. In addition, Apogee has initiated a Phase 1 trial for APG990, a promising drug for atopic dermatitis, with interim data expected in 2025.

The company has also appointed Jeff S. Hartness as its new Chief Commercial Officer, bringing over two decades of biotech industry experience to the role. Dr. Lisa Bollinger has also joined the company's board of directors, bringing valuable regulatory expertise.

In terms of financials, Apogee maintains a robust position, with $790 million in assets expected to support the continued development of its pipeline into 2028. Analyst firms BTIG and Stifel have maintained their Buy ratings on Apogee's stock, reflecting confidence in the company's drug pipeline. These are the recent developments at Apogee Therapeutics.

InvestingPro Insights

Apogee Therapeutics Inc (NASDAQ:APGE) presents an intriguing investment case, as highlighted by recent InvestingPro data and tips. The company's market capitalization stands at $3.54 billion, reflecting investor optimism about its potential. This optimism is further supported by the stock's impressive performance, with a one-year price total return of 298.55% as of the latest data.

InvestingPro Tips reveal that Apogee holds more cash than debt on its balance sheet, which is crucial for a biotech company investing heavily in research and development. This financial stability aligns with the company's ambitious pipeline plans outlined in the article. Additionally, the company's liquid assets exceed short-term obligations, providing further financial flexibility as it progresses through various clinical trials.

However, investors should note that Apogee is not currently profitable, with a negative P/E ratio of -28.27 for the last twelve months as of Q2 2024. This is not uncommon for biotech companies in the development stage, and the article's focus on future catalysts in 2025 suggests potential for future profitability.

For a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 11 additional InvestingPro Tips available for Apogee Therapeutics, which could provide valuable context for investors considering the stock's potential in light of its upcoming pipeline milestones.

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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