Stifel Reiterates Buy Rating on Eliem Therapeutics (ELYM), Sees Positive Risk/Reward Ahead of Upcoming ETX-810 Readouts

Stifel analyst Paul Matteis reiterated a Buy rating and $35.00 price target on Eliem Therapeutics Inc. (NASDAQ: ELYM) ahead of the upcoming ETX-810 Phase 2 readouts.

The analyst comments: "We are reiterating our Buy rating on ELYM; in our view, the stock risk/reward is favorable on ETX-810 ph2 readouts in 2Q (DPN) and 2H22 (LSR), respectively. ETX-810 is a patented pro-drug for PEA, a nutraceutical that has been examined in, by our count, ~30 clinical studies in pain of varying quality, though the totality of the data suggest real benefit. The bear case here is simple: pain is difficult, and conceptually, a nutraceutical with an uncertain (i.e., pleiotropic) mechanism-of-action is, at face, easy to be skeptical of. But if one digs in deeper, PEA, with direct implications for ETX-810, has succeeded as an analgesic in a handful of placebo controlled studies, including two (N=636, N=135) in LSR/sciatica. DPN data come first, and this readout is arguably riskier (relatively less evidence), but given the upside biased stock risk/reward we think the set-up is attractive ahead of both catalysts."

For an analyst ratings summary and ratings history on Eliem Therapeutics Inc. click here. For more ratings news on Eliem Therapeutics Inc. click here.

Shares of Eliem Therapeutics Inc. closed at $8.22 yesterday.

By Vlad Schepkov

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