Piper Sandler outlines biotech catalysts for 2025, highlights key stocks

EditorRachael Rajan
Published 01/03/2025, 10:48 AM
ATYR
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CYTK
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LXRX
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NKTR
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ALT
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PRTA
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IMUX
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ANAB
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UBX
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TECX
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GOSS
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IMVT
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PRAX
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EWTX
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ZURA
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GPCR
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On Friday, Piper Sandler, a leading investment bank, provided an update on the potential catalysts for biotechnology companies into 2025, following a thorough review of third-quarter 2024 earnings and year-end 2024 data.

The firm has identified approximately 190 direct and over 150 indirect catalysts that could impact the firms covered by Piper Sandler. These catalysts include competitive mechanisms of action (MoAs) and indications that could serve as inflection points for investors.

The analyst's report indicates that three companies, Immunovant (NASDAQ:IMVT), Praxis Precision Medicines (PRAX), and Prothena Corporation (PRTA), are poised to have the most direct catalysts within the next 12 months. Each of these companies is expected to present at least three significant data catalysts, which are detailed in the report.

In terms of indirect catalysts that could positively influence the companies covered by Piper Sandler, the report highlights GPCR Therapeutics, which has over 19 oral GLP-1 indirect obesity catalysts, particularly emphasizing GSBR-1290's potential as a leading oral non-peptide. Additionally, the report mentions NAMS and its indirect Lp(a) catalysts, which are expected to establish the connection between Lp(a) lowering and a reduction in major adverse cardiac events (MACE), thereby benefiting the risk profile of obicetrapib's Phase 3 PREVAIL CVOT.

The report also covers the potential for relaxin-related treatments, with four indirect catalysts in 2025 that could boost confidence in TECX's TX45, a RXFP1 agonist, ahead of its Phase 1b readout. Moreover, ZURA's dual MoA pipeline approach is expected to gain validation from about ten indirect catalysts from competitors, which could confirm the broad expansion opportunities in high unmet need immune conditions.

Piper Sandler has identified six stocks with de-risked Phase 3 readouts or interim analyses expected in 2025, including aTYR Pharma, Cytokinetics (NASDAQ:CYTK), GOSS, Immunovant, Praxis Precision Medicines, and Prothena Corporation. The report outlines the study designs, expected timing, and success criteria for these trials.

Lastly, the firm has outlined several companies with key Phase 2b readouts expected in 2025, such as Altimmune (NASDAQ:ALT), AnaptysBio (NASDAQ:ANAB), Edgewise Therapeutics, GPCR Therapeutics, Immunic (NASDAQ:IMUX), Lexicon Pharmaceuticals (NASDAQ:LXRX), Nektar Therapeutics (NASDAQ:NKTR), Praxis Precision Medicines, Prothena Corporation, Termolex, and Unity Biotechnology (NASDAQ:UBX). Piper Sandler's recent outlook note provides a comprehensive summary of trial designs, expectations, success criteria, and rationale supporting the probability of success for these upcoming readouts.

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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