JPMorgan ups Biomea Fusion target, adds to Analyst Focus List

JPMorgan analyst Eric Joseph raised the firm’s price target on Biomea Fusion to $51 from $38 and keeps an Overweight rating on the shares. The analyst also added the shares to the firm’s Analyst Focus List as a growth idea. In addition to affirming BMF-219’s impact on A1C is mediated by improved glycemic control, the updated COVALENT-111 data “make a compelling case for differentiated activity,” the analyst tells investors in a research note. Perhaps “more impressive” is the durable C-peptide rise, glycemic normalization, and A1c decline over the 8-week off-treatment period, adds JPMorgan. The firm says this kind of profile has not been seen thus far among currently approved anti-diabetic agents, and suggests an expanded functional beta-cell pool, particularly among more resistant/insulin deficient type 2 diabetes patients. The firm says the data dovetails with its recently previewed “homerun scenario.”