Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Ventyx Biosciences Shares Surge, Key Overhang Removed Says Analyst

Stock Markets Sep 12, 2022 16:42
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
VTYX
+9.11%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BMY
-0.74%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda

Shares of Ventyx Biosciences Inc (NASDAQ:VTYX) are up significantly Monday (up 62.5% at the time of writing), with analysts pointing to the approval of Bristol Myers Squibb's (NYSE:BMY) deucravacitinib on Friday night.

A Jefferies analyst reiterated a Buy rating and raised the firm's price target on the stock to $60 from $30 in a note reacting to the news. He explained that "VTYX has the potentially cleanest oral TYK2 inhibitor. The first one from BMY has just been approved, importantly with a very clean label w/ no Black Box or major restrictions."

He added that this was a "surprise vs investor expectations for a BB so this removes a key overhang, makes the class much larger and more attractive w/o labeling issues, and makes VTYX significantly more likely to hit $3-4B+ peak sales and attractive to pharma for strategic M&A."

A Credit Suisse analyst reiterated an Outperform rating and $63 price target on Ventyx. He stated that "overall, deucravacitinib's clean label sets a highly favorable precedent for the TYK2i class, and this profile is supportive of broad uptake potential. Deucra's label announcement removes a key overhang over VTYX shares (our top pick), which we believe remain undervalued given the company's broad pipeline optionality and de-risking Ph1 MAD data."

A Piper Sandler senior research analyst explained: "Given the clean label from FDA, we believe that the read through to VTYX will support a rally the shares tomorrow, and we would expect the positive momentum to continue based on a strong launch of deucravacitinib. The game changer with the label is no black box warning that is expected to open the door to broad inflammatory indictions, such as PsA (estimated $4B), Crohn's (est $13B), UC (est $7B), SLe (est $1B), and lupus nephritis (est $3B)." She maintained an Overweight rating and $50 price target on Ventyx.

A Stifel analyst said, "The approval of BMY's deucravacitinib (Sotyktu) with no JAK-like black box (label) represents a near best case for the next-gen TYK2 space (VTYX, Nimbus, Alumis, others), as we believe consensus (and our base case) largely anticipated that FDA conservatism would win out."

"For VTYX, we think the clean TYK2 class label leaves our thesis intact that VTX958's clean ph1 safety profile leaves the prospect for a best in class TYK2i on the table--recall that deucravacitinib only reaches partial IC50 coverage while VTX958 has achieved full IC90 coverage," added the analyst.

Finally, an Oppenheimer analyst maintained an Outperform rating and raised the price target on Ventyx shares to $65. "Key to the VTYX story, the deucravacitinib label does not include a 'Box Warning,' or other warnings related to MACE, mortality or thrombosis. We see this as a significant win for deucravacinitib, VTYX and other TYK2 developers, substantially differentiating the TYK2 inhibitors from the JAK 1-3 inhibitors," the analyst wrote.

Ventyx Biosciences Shares Surge, Key Overhang Removed Says Analyst
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email