On Tuesday, H.C. Wainwright shifted its stance on shares of Acelyrin Inc (NASDAQ:SLRN), downgrading the stock from Buy to Neutral and setting a price target of $6.00. This adjustment follows Acelyrin's recent announcement of its second-quarter 2024 results and a strategic re-prioritization of its pipeline after the topline results from a Phase 3 study of izokibep for the treatment of hidradenitis suppurativa (HS) were revealed.
Acelyrin reported that the second Phase 3 trial, which enrolled 258 patients to assess izokibep 160 mg weekly against a placebo, met its primary endpoint. At Week 12, 33% of patients on izokibep achieved a HiSCR75, compared to 21% for the placebo group. The study also showed statistically significant improvements in HiSCR90 and HiSCR100, with deeper responses observed through Week 16.
Despite these positive outcomes, H.C. Wainwright expressed concerns regarding the competitiveness of izokibep in the HS treatment landscape, noting higher HiSCR75 responses in sonelokimab and bimekizumab during their respective Phase 2 and Phase 3 studies.
Consequently, Acelyrin has decided not to advance izokibep internally for HS treatment. Similarly, izokibep will not be pursued for Psoriatic Arthritis (PsA), despite a positive Phase 2b/3 study, due to insufficient efficacy results.
The firm's decision to downgrade Acelyrin's stock reflects the removal of all izokibep sales from its model, given the company's strategic shift away from further internal development of the drug. The announcement indicates a significant change in Acelyrin's focus as it reassesses its pipeline following the latest clinical data.
In other recent news, ACELYRIN reported positive results from a Phase 3 trial for its drug izokibep, aimed at treating Hidradenitis Suppurativa (HS), a chronic skin condition.
Despite this, the company has decided to suspend further investment into izokibep for HS and psoriatic arthritis (PsA), shifting its focus to the development of lonigutamab for thyroid eye disease (TED). This decision was accompanied by a 33% workforce reduction. The company's financial report showed a net loss of $85.7 million for the quarter ended June 30, 2024.
In the realm of company governance, ACELYRIN shareholders recently elected three Class I Directors and ratified the selection of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
Investment firm Piper Sandler maintained an Overweight rating on Acelyrin's stock, while H.C. Wainwright adjusted its price target on Acelyrin's shares to $18.00, but reaffirmed a Buy rating. Wells Fargo also increased its price target for Acelyrin to $13.00, maintaining an Equal Weight rating.
These recent developments highlight the ongoing progress and strategic changes within ACELYRIN.
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