Analyst Turns Bullish On Aerovate As Competitor Data Reinforce Lead Program Thesis

  • BTIG upgraded Aerovate Therapeutics Inc AVTE from Neutral to Buy with a price target of $27.
  • The analyst writes that to Aerovate's benefit, Gossamer Bio Inc's GOSS TORREY Phase 2 results validated dry powder inhaled (DPI)-administered TKIs in pulmonary arterial hypertension (PAH) as a safe and technically viable approach.
  • But Gossamer's DPI seralutinib does not look like a competitive disease-modifying therapy in PAH, with a PVR reduction of only 14% in the overall study population and 21% in FC III pts (p=.04).
  • BTIG says the results likely do not put pressure on the AV-101 opportunity at this time. 
  • Oral imatinib (the AV-101 API) was previously shown in a Phase 3 study that showed a 32% reduction, and 0.7mg/kg sotatercept in Phase 2 showed a 34% PVR reduction.
  • AVTE expects to complete enrollment in their Phase 2b trial of AV-101 in PAH in mid-2023 and data in 4Q23 or 1Q24
  • By design, there is a seamless transition from Phase 2b to 3 in AVTE's IMPAHCT trial, so the analyst does not expect GOSS to have a material timeline advantage as GOSS is not initiating Phase 3 until 2H23. 
  • Price Action: AVTE shares are down 2.44% at $17.56 on the last check Tuesday.
Price Target
Posted In: Analyst ColorBiotechNewsPenny StocksUpgradesHealth CarePrice TargetSmall CapAnalyst RatingsMoversTrading IdeasGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!