This Inflammatory Disease Focused Stock Is Well Positioned For $12B Crohn's Disease Market

This Inflammatory Disease Focused Stock Is Well Positioned For $12B Crohn's Disease Market
  • Credit Suisse says that Ventyx Biosciences Inc's VTYX topline Phase 1 MAD data for its allosteric TYK2 inhibitor, VTX958 establishes clear differentiation from other TYK2is and meaningfully de-risk the drug's profile. 
  • Credit Suisse raised the price target to $63 from $53 with an Outperform rating.
  • VTYX plans on initiating Phase 2 Proof of Concept trials in psoriasis, psoriatic arthritis, and Crohn's disease (CD) in Q4. 
  • VTX958 achieved dose-dependent exposure/target coverage, with up to 24 hours of TYK2 IC50/IC90 coverage and class-leading coverage of its target cytokines, writes the analyst. 
  • Early data suggests VTX958 can achieve better exposure/TYK2 pathway suppression with a wider safety margin.
  • According to Credit Suisse, VTX958 is particularly well positioned for success in CD, a ~$12 billion indication without any oral therapies that likely require greater TYK2 coverage than psoriasis for adequate disease management.
  • VTYX trades at ~$700 million EV and funds into H1 2024.
  • The analysts see the company offers a compelling investment opportunity with a highly favorable upside/downside.
  • Price Action: VTYX shares are up 32.20% at $24.61 during the last check on Tuesday.
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