On Tuesday, Stifel, a financial services firm, increased its stock price target for Apogee (NASDAQ:APOG) Therapeutics Inc (NASDAQ: APGE) to $95, up from the previous target of $46, while reaffirming a Buy rating on the stock. The adjustment follows the company's positive Phase 1 update for its drug candidate APG777.
The analyst from Stifel highlighted the significance of the recent updates for APG777, particularly in Alzheimer's disease (AD), suggesting that the new data could lead to an increased probability of success (PoS) for the drug. Additionally, the possibility of a six-month maintenance dosing schedule for APG777 is expected to contribute to a larger market share for the treatment.
The initiation of Phase 2 trials is seen as a key milestone for Apogee Therapeutics, with anticipated Atopic Dermatitis data emerging next year. The analyst anticipates that these developments could position the company as an attractive merger and acquisition (M&A) target, especially considering the drug's potential in atopic dermatitis and other indications, which are currently undervalued in the stock's price.
Furthermore, the recent update solidifies the progress of another drug candidate, APG808, which targets the IL-4Ra and is expected to deliver Phase 1 data within this year. The analyst notes that this development has not been the focus of investors but could provide significant upside, especially across various respiratory indications.
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