HomeMarket NewsMicro Cap StocksAllakos' Antibodies For Chronic Skin Conditions, Analyst Sees Over 400% Stock Upside

Allakos' Antibodies For Chronic Skin Conditions, Analyst Sees Over 400% Stock Upside

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JMP Securities Initiates Coverage on Allakos Inc (NASDAQ: ALLK)

JMP Securities has recently initiated coverage on Allakos Inc (ALLK), highlighting the potential of their novel monoclonal antibodies that target receptors responsible for driving multiple diseases.

Lead analyst Jonathan Wolleben maintains a Market Outperform rating for Allakos and sets a price target of $11 per share.

Key candidates lirentelimab and AK006 specifically bind to Siglec-8 and -6 receptors found on eosinophils and mast cells, effectively suppressing pathologic activation and proliferation.

According to JMP, the broad applications of these lead programs allow them to respond and counteract various activating signals.

Lirentelimab, the primary candidate, is currently in Phase 2 clinical trials for chronic spontaneous urticaria (CSU) and atopic dermatitis (AD).

These conditions collectively affect approximately 3 million individuals in the United States. The current treatment options, which primarily involve first-line antihistamines, yield positive results in only half of the patients.

For those who do not respond to antihistamines, the only approved biologic, Xolair (omalizumab) by Genentech/Novartis AG (NVS), offers limited relief, working effectively for only about one-third of patients and carrying a black box warning for anaphylaxis.

Despite its limited effectiveness and safety concerns, Xolair generates over $1.5 billion in sales for chronic spontaneous urticaria (CSU).

In the case of moderate-to-severe atopic dermatitis (AD), which affects approximately 2 million Americans, multiple approved drugs contribute to an impressive $8 billion in sales in 2022.

However, there is still room for improvement in various areas, including achieving more profound responses, simplifying dosing regimens, and ensuring improved safety profiles.

Price Action

On Wednesday, Allakos shares (ALLK) were up by 17.10% to $2.53.

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