Alumis initiated with an Outperform at Leerink

Leerink initiated coverage of Alumis (ALMS) with an Outperform rating and $29 price target. The firm notes Alumis is a clinical-stage biotech developing targeted therapies for autoimmune and inflammatory diseases. The company is initially focused on a franchise of selective TYK2 inhibitors, with lead asset ESK-001 as a potentially best-in-class oral allosteric TYK2i being developed for psoriasis and systemic lupus erythematosus. TYK2 is a clinically validated target in both indications via the development of Bristol Myers’ (BMY) TYK2i Sotyktu and with positive Phase 2 proof-of-concept data in SLE, says Leeink. The firm sees opportunity for ESK-001 to differentiate based on more favorable pharmacology, resulting in injectable biologic-like efficacy with a clean safety profile.