- 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.
