BUZZ-Jefferies starts BioAge Labs with 'buy' on novel obesity drug

Reuters10-21

** Jefferies initiates coverage of drug developer BioAge Labs with "buy" rating and price target of $42

** Brokerage says BIOA's lead candidate, azelaprag, has a novel mechanism to be used as an additional therapy with popular GLP-1 drugs for obesity and could help address certain unmet needs in an increasingly competitive market

** BIOA plans to test its drug along with Eli Lilly's

Zepbound and Novo Nordisk's Wegovy in mid-stage studies

** Jefferies models peak revenues of nearly $2 bln for the drug; says it targets "energy expenditure" compared to energy intake that other drugs target

** Based on early data, brokerage expects drug could help achieve more weight loss vs with Zepbound/Wegovy alone and with fewer side effects

** Jefferies says azelaprag could also help preserve muscle mass while increasing fat loss and provide a convenient oral dosing alternative

** As of last close, stock up ~30% since Nasdaq debut on Sept. 26

(Reporting by Bhanvi Satija in Bengaluru)

((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment