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Wednesday, March 1, 2023

Obesity Player Structure New Buy at Guggenheim, BMO

 

  • Guggenheim Partners initiated coverage on Structure Therapeutics Inc  with a Buy rating and a price target of $50 based on the multi-billion-dollar potential of oral small GLP1R agonist GSBR-1290. 
  • Suppose Phase 2a results in late 2023 demonstrate acceptable on-mechanism tolerability and at least 5% weight loss at 12 weeks in the obesity arm of the study. In that case, the analyst sees potential for ~2x return in the next 12-18 months, with a 4x return possible with robust Phase 2b data in 2025 and the GIPR/GLP1 oral co-agonist advancing into the clinic. 
  • Ultimately, the analyst sees positive GSBR-1290 results catalyzing a major partnership/collaboration with a large biopharma.
  • BMO Capital Markets has initiated coverage on Structure Therapeutics with a price target of $40 and an Outperform rating.
  • The analyst writes that the company's lead asset GSBR-1290 could be a competitive oral option in the growing obesity and type 2 diabetes market, with data coming in 4Q23. 
  • Injectable options dominate the market, but BMO's proprietary survey work suggests a strong desire for effective oral formulations.
  • The space has large players, including Eli Lilly And Co Pfizer Inc , and Novo Nordisk A/S .
  • GSBR-1290 could launch by 2027, well within the likely timeframe for launches of competitive assets.
  • BMO also notes the upside potential from follow-on assets in pulmonary and metabolic indications.

FDA OKs Regeneron-Sanofi's Sarilumab As First Biologic For Stiffness, Pain In Muscles

 

  • The FDA approved Regeneron Pharmaceuticals Inc's  and Sanofi SA's  Kevzara (sarilumab) for polymyalgia rheumatica (PMR), an inflammatory rheumatic disease, 
  • The approval covers adult patients who have had an inadequate response to corticosteroids or cannot tolerate corticosteroid taper.
  • Kevzara is now approved to treat two chronic inflammatory disorders.
  • PMR often initially presents with pain and stiffness around the neck, shoulder, and hip area, and symptoms include fatigue, low-grade fever, and weight loss. 
  • PMR generally affects people who are 50 years and older.
  • The FDA approval for this additional indication for Kevzara is based on results from the SAPHYR Phase 3 trial in patients with steroid-resistant active PMR. 
  • At 52 weeks, the trial met its primary endpoint, with 28% of Kevzara-treated patients achieving sustained remission compared to 10% for placebo. 
  • In addition, an analysis of a secondary endpoint showed that the median cumulative CS dose was 777 mg for Kevzara, compared to 2044 mg for the placebo.