On Wednesday, Maxim (NASDAQ:MXIM) Group initiated coverage on shares of Neurobo Pharmaceuticals (NASDAQ:NRBO), assigning a Buy rating with a price target set at $10.00. The firm highlighted Neurobo's development of two promising drugs, DA-1726 and DA-1241, aimed at treating obesity and metabolic dysfunction-associated steatohepatitis (MASH), respectively.
Neurobo's DA-1241, a GPR119 agonist, is currently undergoing a Phase 2a study for MASH, with results expected in the second half of 2024. DA-1726, a dual GLP-1/GCGR agonist for obesity, is in a Phase 1 study, with initial data anticipated in the third quarter of 2024. The analyst noted that positive clinical trial outcomes have historically led to significant valuation increases in the metabolic therapeutic space.
Comparing Neurobo to its peers, the firm referenced Viking Therapeutics (NASDAQ:VKTX) and Altimmune (NASDAQ:ALT), both of which are developing treatments in the MASH and obesity fields and have seen substantial market capitalization growth. Neurobo, although earlier in the clinical process, could follow a similar trajectory based on upcoming data readouts and the drugs' mechanistic differentiation.
The analyst's optimism is rooted in the active clinical, regulatory, and commercial developments in the obesity and MASH sectors, which have seen rising valuations and capital inflows. The analyst believes that Neurobo's strategic positioning and the anticipated data readouts in 2024 present a favorable risk/reward scenario for the company.
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