Evercore ISI on Vera Therapeutics (VERA): 'buying opportunity'

Evercore ISI analyst Liisa Bayko reiterated an Outperform rating and $75.00 price target on Vera Therapeutics (NASDAQ: VERA).

The analyst comments "VERA sold off ~20% Friday following news in competitor Otsuka’s 2024 earnings presentation that the company plans to file for at home, monthly, self-administration sibeprenlimab (antibody mAPRIL mAb), in a prefilled syringe, for the treatment of IgAN. Physician administered sibeprenlimab, while a possibility because P3 was in clinic administration, was never part of our thesis on VERA. We continue to like VERA for atacicept attributes. It will be one of the first truly disease modifying therapies for IgAN with unique MoA (APRIL+BAFF) and is the ONLY company with 2-year data showing stabilization of eGFR (0.6mL decline) – in line with normal range offering a ‘functional cure’. See our ASN note HERE. Moreover, atacicept will come to market as a simple and convenient, once weekly, auto injector with demonstrated safety and tolerability. Sibeprenlimab is a larger 2ml volume required to deliver 400mg, which we anticipate is likely more viscous, hence delivered via prefilled syringe. Atacicept is 1ml (75mg) autoinjector for enhanced simplicity & convenience. Key unknowns for sibeprenlimab are efficacy - recall the medicine is being delivered AC for the first time and the 400mg dose will be slightly lower than the 4mg/kg IV dose used in P2. Moreover, P3 encompassed a more diverse patient population than P2, which was predominantly Asian, and we know IgAN presents in a more inflammatory form in the Asian population. We view sibeprenlimab P3 at ERA in June, followed by atacicept P3 data mid-year, which will be the next key inflection points for shares. We anticipate data will be in a similar range of 30-40% reduction in proteinuria over standard of care. Finally, FDA will be the ultimate arbiter of the data to support at home self-administration, as P3 was administered in clinic. Stepping back, IgAN is a large market opportunity with room for multiple players to be successful. There are 125K patients in the US alone, estimated 136K in EU and 130K in Japan. Patients often present in early adulthood with significant loss of kidney function and faced with the likelihood of eventual kidney transplant. Therapy will be lifelong. We value the TAM at >$25B WW."

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

Shares of Vera Therapeutics closed at $27.46 yesterday.

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