As Focus Shifts From Hidradenitis Suppurativa, Analyst Seems Bullish On Aclaris

Aclaris Therapeutics Inc ACRS flunked a 12-week, Phase 2a study of zunsemetinib (ATI-450) for moderate to severe hidradenitis suppurativa.
The study did not meet its primary endpoint of change from baseline in inflammatory nodule/abscess count (AN) of zunsemetinib 50mg BID versus placebo at week 12. The study did not meet the secondary efficacy endpoints.
William Blair writes that while the negative results are disappointing and represent a setback, it does not change the thesis that zunsemetinib may demonstrate promising results in the ongoing Phase 2 studies in rheumatoid arthritis (RA) and psoriatic arthritis (PsA) expected later in 2023.
In addition to zunsemetinib, preliminary data from ATI-1777, the company’s second compound from the KINect drug discovery platform, suggest the compelling efficacy of ATI-1777 in atopic dermatitis (AD) without the adverse event baggage of the broader class of JAK inhibitors, and validate Aclaris’s development platform, the analyst writes.
The analyst believes the company’s current enterprise value of about $700 million significantly undervalues the potential for zunsemetinib in several blockbuster indications and the value in the company’s pipeline, including ATI-1777 and ATI-2138.
William Blair maintains Outperform rating.
Price Action: ACRS shares are down 48.79% at $6.55 on the last check Monday.