ImageneBio initiated with an Outperform at Leerink

Leerink initiated coverage of ImageneBio (IMA) with an Outperform rating and $30 price target. The firm views shares as “dramatically undervalued,” particularly following a selloff in the wake of disappointing competitor Sanofy’s (SNY) amlitelimab results on September 4. Leerink believes ImageneBio’s lead asset IMG-007, a non-depleting anti-OX40 monoclonal antibody, is a potential blockbuster for atopic dermatitis. Early clinical data for IMG-007 suggests compelling efficacy at Week 16 compared to Dupixent. Competing drug candidate Phase 3 disappointments from Amgen’s (AMGN) OX40 rocatinlimab and Sanofi’s OX40L amlitelimab have dampened investor sentiment toward the OX40-OX40L class. This yields a favorable setup for IMG-007 to deliver a superior “trifecta” competitive profile, the firm argues.