On Friday, Guggenheim maintained a Buy rating on Spyre Therapeutics (NASDAQ: SYRE) and increased its price target to $65 from the previous $50. The firm's analyst expressed increased confidence in the company's pipeline, particularly highlighting three of Spyre's biologic candidates: SPY001, SPY002, and SPY003.
The analyst noted that SPY001, an anti-α4β7 antibody, is expected to allow for quarterly subcutaneous dosing, which is less frequent than the bi-weekly dosing required for Takeda's Entyvio. Phase I single ascending dose (SAD) data are anticipated in the coming weeks, with positive results expected.
Furthermore, SPY002, an anti-TL1A antibody, has already shown promising preclinical data and is projected to enable quarterly dosing. This frequency is less than the monthly dosing required for first-generation TL1A antibodies, with the potential for improved efficacy. The data for SPY002 is expected in the first half of 2025.
Additionally, SPY003, an anti-IL-23 (p19) antibody, has demonstrated efficacy comparable to AbbVie (NYSE:ABBV)'s Skyrizi in preclinical trials. This candidate is expected to offer dosing every 12 to 24 weeks, with data anticipated in the second half of 2025.
The analyst believes that Spyre's diverse portfolio, focusing on different stages of inflammatory bowel disease (IBD) pathophysiology, has significant market potential. The IBD market is estimated to reach approximately $34 billion by 2030, and Spyre's combined peak sales for these assets could reach $6.4 billion.
The firm also highlighted that while investors are looking forward to the fourth quarter of 2024 readouts, the combination of data from these assets is seen as a key driver for meaningful upside potential.
InvestingPro Insights
Complementing Guggenheim's optimistic outlook on Spyre Therapeutics (NASDAQ: SYRE), recent data from InvestingPro reveals some intriguing financial aspects of the company. Despite the company's current unprofitability, as indicated by its negative P/E ratio of -8.89 for the last twelve months as of Q2 2024, Spyre's stock has shown remarkable performance. The company boasts a strong 1-year price total return of 203.6%, aligning with the analyst's confidence in its pipeline potential.
InvestingPro Tips highlight that Spyre holds more cash than debt on its balance sheet, which could provide financial flexibility as it advances its promising biologic candidates. This solid cash position is particularly crucial for a company in the development stage of novel therapeutics. Additionally, the tip noting that "2 analysts have revised their earnings upwards for the upcoming period" supports Guggenheim's positive stance on the company's future prospects.
It's worth noting that Spyre's stock price movements are quite volatile, which is not uncommon for biotech companies with products in development. This volatility, combined with the high return over the last year, suggests that investors are reacting strongly to pipeline developments and potential market opportunities in the IBD space.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide deeper insights into Spyre Therapeutics' financial health and market position.
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