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Oppenheimer cuts Ventyx Biosciences stock target, holds Outperform rating

EditorAhmed Abdulazez Abdulkadir
Published 06/06/2024, 12:40
VTYX
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On Thursday, Oppenheimer adjusted its price target for Ventyx Biosciences Inc (NASDAQ:VTYX), decreasing it to $10.00 from the previous $12.00. Despite the reduction, the firm maintained an Outperform rating on the company's shares. The adjustment follows a market reaction to comparative study results that were less favorable for Ventyx's product.

Ventyx Biosciences' latest data revealed that their compound, VTX3232, resulted in approximately 3% weight loss in mice after 14 days, compared to the roughly 5% weight loss observed with competitor NodThera's NT-0796. Furthermore, at the 24-day mark, mice treated with VTX3232 showed no significant change in body weight from the baseline. This is an improvement compared to the control group but does not represent actual weight loss. In contrast, Corbus Pharmaceuticals (NASDAQ:CRBP)' CRB-913, a CB1R inverse agonist, demonstrated a notable 22% weight loss at the same 14-day checkpoint.

Oppenheimer's report acknowledges several caveats in the data and suggests that a definitive conclusion cannot be reached without further information on the human dose equivalents for the compounds in question or additional human trial data. Due to these uncertainties and the recent study outcomes, Oppenheimer has decided to lower the price target for Ventyx Biosciences by $2.

In other recent news, Ventyx Biosciences has made several significant announcements. The company reported positive outcomes from the Phase 1 trial of their NLRP3 inhibitor, VTX3232, along with plans for upcoming Phase 2 trials. Despite a net loss of $38.6 million for the quarter, Ventyx maintains a strong cash balance of $302.6 million.

The company also announced the appointment of Matthew Moore, an industry veteran, as its new Chief Operating Officer. Moore brings with him extensive experience from roles at Arcutis Biotherapeutics (NASDAQ:ARQT), AbbVie (NYSE:ABBV), Allergan (NYSE:AGN), Actavis , and Forest Labs, as well as in healthcare investment banking at CIBC Oppenheimer.

Moreover, Ventyx shared encouraging preclinical data for VTX3232, its new drug candidate targeting obesity-related inflammation. The compound showed positive effects in diet-induced obesity mice models, leading to reductions in body weight, body fat, and food intake.

The company plans to move forward with a Phase 2a clinical trial for VTX3232, which is expected to commence later this year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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