May. 6 at 10:24 AM
Citizens⬆️
$AVTX's PT to
$62 (was
$52),⬆️PoA to 70%, reiterated at Market Outperform, and said: Positive Phase 2 results for abdakibart in HS provide clear support for blockbuster potential.
$NVS $INCY ABBV MLTX UCBJY
Citizens added—On Tuesday, Avalo announced positive results from the Phase 2 trial evaluating abdakibart in patients with moderate-to-severe hidradenitis suppurativa.
We view the magnitude of benefit (~17% placebo-adjusted HiSCR75 responder rate) as robust and competitive.
Furthermore, the HiSCR75 endpoint met the threshold of success (15%-25%) noted by KOL Dr. David Rosmarin on our recent preview call (see our note here).
The company stated that the safety and tolerability profile of abdakibart was favorable and, most importantly in our view, there were no adverse events related to neutropenia, serious infections, or opportunistic infections.
We have increased our probability of approval for abdakibart in HS from 55% to 70%, driving our increased price target.