Biomea type 2 diabetes update has contradictory data, says Piper Sandler

Piper Sandler keeps an Overweight rating on Biomea Fusion with a $45 price target after the company provided updates from BMF-219’s type 2 diabetes study over the weekend and presented initial data from the acute leukemia dose-escalation. There was “somewhat of a conflicting initial disclosure” in type 2 diabetes for the 200 mg cohorts where a 36% rate of A1c reduction at week 26 outperformed the just disclosed 20% rate for 100 mg cohorts but underperformed on week four mean A1c reduction, the analyst tells investors in a research note. The firm says a couple contradictory data points could raise some additional questions, but notes Biomea management contends that week four A1c reduction is likely not an endpoint most predictive of longer term benefit and pointed to future week 26 data across all cohorts as somewhere a dose response could play out. The stock in morning trading is down 32% to $11.40.