Piper Sandler analyst Yasmeen Rahimi reiterated an Overweight rating and $180.00 price target on Oruka Therapeutics (NASDAQ: ORKA).

The analyst commented: "ORKA-001 License Amendment Enables Future IBD Dev. Boosting Long-Term Value; ORKA filed an 8-K detailing an amendment to its license agreement with Paragon Therapeutics (private). Altogether, this effectively "freed up" indication rights to the IL-23s for both ORKA and SYRE (not covered), and enables combination/monotherapy development in previously restricted areas after a 2-4-year delay. For instance, ORKA will eventually be allowed to pursue IBD (SYRE will eventually be able to develop in PsO/PsA). Ultimately, ORKA explained that serves two key purposes: 1) strengthen the value of ORKA's assets from a strategic/BD perspective; and 2) prevent near-term competition as the 2-4-year development delay enables each company to maintain focus on their core indications. All told, we are pleased to hear ORKA remains laser-focused to efficiently execute on ORKA-001 and ORKA-002 across PsO/PsA and HS. Therefore, this amendment helps unlock future value proposition to ORKA-001/the pipeline, and thus we remain bullish into a catalyst-rich year+."

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Shares of Oruka Therapeutics closed at $55.01 yesterday.