Guggenheim Starts Parabilis Medicines (PBLS) at Buy

Guggenheim analyst Michael Schmidt initiates coverage on Parabilis Medicines (NASDAQ: PBLS) with a Buy rating and a price target of $40.00.

The analyst comments: “Under leadership of its experienced executive team, PBLS has developed the “Helicon platform”, a peptide-based drug discovery engine producing cell-penetrant helical peptides that can engage historically "undruggable" targets. We believe the platform serves as a differentiated product engine, which PBLS leverages to build a pipeline of wholly owned product candidates addressing difficult, but mechanistically validated cancer targets, and industry R&D collaborations (e.g., with REGN). Lead product candidate zolucatetide, a first-in-class, direct β-catenin inhibitor, is a “pipeline in a product”, addressing a large, potential >$16Bn US TAM across Wnt-pathway-activating mutant (WPAM) cancers prioritized for development. CTNNB1 and APC mutations alone occur in 10–15% of all solid tumors; desmoid tumors (DT) where mutant CNNTB1 is a driver in near-100% of patients, reflects, in our view, a high success probability lead indication for zolucatetide supported by positive Ph 1 PoC data that de-risk planned Phase 3 studies in 1H27. Familial adenomatous polyposis (FAP) could be the most compelling opportunity for zolucatetide, given strong mechanistic hypothesis (near 100% APC mutations), high unmet need, limited competition, and promising emerging Ph 1 data. Ph 1b expansion data in 2027 should provide more visibility on registration opportunities in other cancers, including HCC, CRC, and rare WPAM tumors.

We also see additional optionality in PBLS’ pipeline in mCRPC where two mechanistically differentiated programs (ERG degrader and AR-ON degrader) advance towards 2027 INDs. Our $40/share PT reflects 75%/30%/15%/10% PoS for zolucatetide in DT/FAP/ACP/HCC with potential positive POC data in other tumor types and advancement of other pipeline programs or partnerships reflecting sources of potential upside to our valuation.”

For an analyst ratings summary and ratings history on Parabilis Medicines click here. For more ratings news on Parabilis Medicines click here.

Shares of Parabilis Medicines closed at $29.58 yesterday.

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