Acelyrin price target lowered to $20 from $68 at Piper Sandler

Piper Sandler analyst Yasmeen Rahimi lowered the firm’s price target on Acelyrin to $20 from $68 and keeps an Overweight rating on the shares following the company’s announcement to discontinue further development of izokibep in HS, PsA, and AxSpa. The firm notes Acelyrin provided a comprehensive pipeline update with strategic prioritization of lonigutamab development in TED and Phase 3 initiation on track for Q1 2025. Importantly, management emphasized lonigutamab as a key value driver for the company with EOP2 meeting expected in the second half of 2024 followed by an investor event focused on TED unmet need, additional Phase 2 data, dose selection, and announcement of Phase 3 program design. Accordingly, Piper believes flexibility of the Ph2 lonigutamab trial with multiple dose paradigms fully derisks Phase 3 development and ensures a streamlined path for TED registration. Further, the firm thinks prioritization of lonigutamab demonstrates Acelyrin’s clear focus on strong execution.