Vera Therapeutics' Kidney Disease Drug Has Opportunity In A Competitive Development Landscape: Analyst

Raymond James initiated coverage on Vera Therapeutics Inc VERA, a late-stage drug developer in the autoimmune kidney space. The lead asset, atacicept, is a BLyS/APRIL dual inhibitor fusion protein currently in a Phase 3 study in IgA Nephropathy (IgAN).

In June, Vera Therapeutics announced that the Phase 2b ORIGIN trial of atacicept for IgA nephropathy (IgAN) met its primary and key secondary endpoints, with statistically significant and clinically meaningful reductions in proteinuria and stabilization of eGFR through week 36.

The analysts Ryan Deschner and Steven Seedhouse say that the encouraging Phase 2 IgA nephropathy study substantially de-risks the ongoing Phase 3 study, with accelerated approval expected in 2026. 

The analyst initiates an Outperform rating and a price target of $29.

Despite the intensifying competition in the development landscape, the existing deficiencies in approved medications and significant unmet needs present a favorable opportunity for atacicept to attain accelerated approval and potentially emerge as a highly successful drug. 

The IgAN market presents significant opportunities for several next-generation IgAN medications, which are expected to offer considerably enhanced safety and tolerance while potentially delivering more profound effects on long-term kidney outcomes like estimated glomerular filtration rate, a measure of how well the kidneys are working.

Raymond James's model suggests that atacicept could achieve blockbuster status with peak WW unadjusted sales of $1.5 billion by 2035.

Vera also possesses the choice to recommence a Phase 3 study focused on evaluating atacicept's effectiveness in treating lupus nephritis, thereby positioning themselves with two advanced-stage initiatives targeting substantial markets within the renal space.

Price Action: VERA shares are down 0.78% at $15.88 on the last check Monday.