Acelyrin pullback on izokibep data a buying opportunity, says Piper Sandler

After Acelyrin announced top-line results from Part B of a Phase 2b/3 trial evaluating izokibep for the treatment of moderate-to-severe Hidradenitis Suppurativa, or HS, Piper Sandler admits to being “surprised about this data driven by puzzling dropout rates across all arms.” However, on the call it was clear that these types of discontinuations are not expected across other studies, such as the PsA study reading out Q1, and the firm points to four direct and 11 indirect catalysts it argues “should keep the stock momentum to regain value.” The firm, which believes the pullback following the izokibep data is “a buying opportunity,” keeps an Overweight rating and $68 price target on Acelyrin shares, which are down $16.20, or 58%, to $11.70 in pre-market trading.