Avalo Therapeutics' Newly Acquired Ex-Eli Lilly Drug Could Stand Out In Competitive Hidradenitis Suppurativa Market, Analyst Upgrades
Portfolio Pulse from Vandana Singh
Oppenheimer upgraded Avalo Therapeutics Inc (AVTX) after its acquisition of an ex-Eli Lilly drug, AVTX-009, for hidradenitis suppurativa (HS). The drug is Phase 2-ready and shows promise in the competitive HS market, with a potential expansion into ulcerative colitis. Avalo announced a $185 million private placement to fund development. The analyst set a $35 price target, anticipating a 15% market penetration and a $75,000 launch price in 2029. AVTX shares rose 13.9% to $17.36.
April 16, 2024 | 6:25 pm
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POSITIVE IMPACT
Avalo Therapeutics upgraded by Oppenheimer due to promising prospects of AVTX-009 in HS market, with a $35 price target. $185 million raised for development.
The upgrade by Oppenheimer reflects strong confidence in AVTX-009's market potential, significantly impacting investor sentiment and stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
AbbVie's lutikizumab, targeting IL-1α and IL-1β, showed benefits in HS, highlighting the competitive landscape for Avalo's AVTX-009.
The mention of AbbVie's success with lutikizumab in HS indirectly impacts its stock by highlighting its competitive position in the market, though the direct short-term impact is neutral.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEUTRAL IMPACT
Eli Lilly originally developed AVTX-009, which was acquired by Avalo Therapeutics for HS treatment.
While the acquisition of AVTX-009 from Eli Lilly is significant for Avalo, the direct short-term impact on Eli Lilly's stock is likely neutral, given its diverse portfolio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Novartis' MAS825, targeting IL-1β and IL-18, succeeded in a trial for HS, indicating a competitive market for Avalo's AVTX-009.
Novartis' success with MAS825 in HS trials presents a competitive landscape for Avalo's AVTX-009, but the direct short-term impact on Novartis' stock is likely neutral.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40