Analyst Rami Katkhuda from LifeSci Capital maintained a Buy rating on Tourmaline Bio (TRML – Research Report) and keeping the price target at $58.00.
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Rami Katkhuda has given his Buy rating due to a combination of factors surrounding Tourmaline Bio’s recent clinical trial results and market potential. The Phase II TRANQUILITY study demonstrated that pacibekitug, a once-quarterly subcutaneous injection, effectively reduces hsCRP levels in patients with cardiovascular disease. This outcome is comparable to other treatments in the field, such as Novo’s zilvekimab and CSL’s clazakizumab, without significant safety concerns. The less frequent dosing regimen of pacibekitug is expected to enhance patient adherence, which is crucial for long-term outcomes in ‘silent’ diseases.
Despite some questions about the placebo response in the study, the data aligns with other IL-6 inhibitor trials, indicating inherent variability in biomarker measurement. Katkhuda believes that Tourmaline Bio is undervalued given the large market for atherosclerotic cardiovascular disease (ASCVD) and the limited number of IL-6 inhibitors in development. The potential of pacibekitug to be a best-in-class treatment further supports the Buy rating, with future data from Novo’s cardiovascular outcomes trial potentially reinforcing the link between hsCRP reduction and improved cardiovascular outcomes.
According to TipRanks, Katkhuda is a 4-star analyst with an average return of 13.3% and a 37.21% success rate. Katkhuda covers the Healthcare sector, focusing on stocks such as Mineralys Therapeutics, Inc., Tourmaline Bio, and VYNE Therapeutics.
In another report released on May 11, Leerink Partners also maintained a Buy rating on the stock with a $49.00 price target.