Citi says buy the dip in Biomea Fusion, ‘market completely missing the point’

Citi says “it appears shorts are attacking” Biomea Fusion again on disclosure of the long-term 26 weeks follow-up data from the first two cohorts of adults with type 2 diabetes enrolled in the ongoing Phase II clinical study, COVALENT-111, but the analyst contends that the “point which everyone is missing is that any residual HbA1c benefit 22 weeks after cessation of dosing is a win.” The point of exploring 26 weeks was to define the durability and “the correct conclusion” is that a dosing holiday of 22 weeks “appears to be a bit too long,” which has “an easy fix” as patients can be redosed for 4 weeks at 100 mg without food once a quarter given the favorable safety profile and incremental compliance burden. The analyst, who “cannot emphasize enough the opportunity to buy shares at the current discount,” reiterates a $90 price target and Buy rating on Biomea, which the analyst also calls a Top Pick.