Acelyrin initiated with neutral view at Wells Fargo, here’s why

Wells Fargo initiated coverage of Acelyrin with an Equal Weight rating and $11 price target. The analyst thinks the probability that izokibep will be best-in-class is likely low and execution issues for the company’s Phase 2b/3 trials “will have investors questioning the integrity of their data.” Acelyrin shares may be “cheap,” but Wells is not ready ready to step in yet, the analyst tells investors in a research note. The firm’s diligence suggests over saturation of IL-17 leads to lower benefit, thus it may be hard for izokibep to differentiate.