BTIG Starts Aclaris Therapeutis (ACRS) at Buy

BTIG analyst Julian Harrison initiates coverage on Aclaris Therapeutis (NASDAQ: ACRS) with a Buy rating and a price target of $32.00.

The analyst commented, "We see Aclaris uniquely positioned with their MK2 inhibitor zunsemetinib (fka ATI-450) to seize on the large opportunity for orally available, safe, and potent kinase inhibitors across a range of inflammatory conditions. This opportunity is particularly timely in the wake of JAK inhibitors receiving class-wide black box warnings in autoimmune disease. Similar to JAK, MK2 is a central regulator of several key pro-inflammatory cytokines (TNF-α, IL-17, IL-1β, IL-6, among others). Despite its promise, MK2 has historically been more challenging to drug with off-target toxicity and attenuated efficacy over time encountered in prior programs. Zunsemetinib looks well-designed to overcome these past shortcomings with its unprecedented target specificity. Importantly, early clinical data support a profile for the molecule that should continue to be meaningfully different vs. the rest of the class; zunsemetinib’s early clinical data suggest activity comparable to JAK inhibitors without JAK-related safety concerns. If this success continues, zunsemetinib should emerge as a blockbuster drug given its therapeutic relevance across several large TAMs in autoimmune disease. We think ACRS currently trades at an attractive discount relative to these opportunities and cash runway until the end of 2025. For these reasons, we like the set up for ACRS shares ahead of clinical PoC data in hidradenitis supparativa (1H23), psoriatic arthritis (1H23), and rheumatoid arthritis (2023). From there, we see additional opportunities for longer term upside from Aclaris’ topical JAK inhibitor that has materially differentiated PK (ATI-1777; Phase 2b atopic dermatitis data in 1H23) along with an earlier stage pipeline / Schrodinger-enabled (SGDR, Not Rated) platform capabilities that hone Aclaris' expertise in kinase inhibitor drug development."

For an analyst ratings summary and ratings history on Aclaris Therapeutis click here. For more ratings news on Aclaris Therapeutis click here.

Shares of Aclaris Therapeutis closed at $15.75 yesterday.

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