On Wednesday, Baird initiated coverage on Alumis Inc (NASDAQ: ALMS) with an Outperform rating and set a price target of $25.00. The firm expressed a positive outlook on the company's prospects in the inflammation and immunology (I&I) sector, particularly highlighting Alumis's TYK2 inhibitors in development.
The analyst from Baird cited the potential of Alumis's two TYK2 inhibitors as a driving factor for the optimistic rating. These inhibitors are being developed to treat a range of I&I and neuroinflammatory conditions and are believed to have the capability of becoming blockbusters in their respective markets.
Alumis is anticipated to release 52-week ESK-001 Open Label Extension (OLE) data in plaque psoriasis in 2025. Baird's analyst suggests that these results could underscore the benefits of maximal target inhibition and continued improvements on PASI thresholds, which measure the severity of psoriasis.
Additionally, the company has a Phase 2b systemic lupus erythematosus (SLE) trial expected to provide results in 2026. Before that, the end-of-year 2024 will see the readout from the Phase 1 trial of A-005, another product in Alumis's pipeline.
The setting of a $25.00 price target reflects Baird's confidence in Alumis's research and development trajectory, as well as its potential to impact the I&I market positively with its innovative treatments.
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