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Structure Therapeutics recent selloff ‘highly overdone,’ says Cantor Fitzgerald

Cantor Fitzgerald says Structure Therapeutics (GPCR) shares are down 28% since early June, when positive Phase 2A obesity data were released for GSBR-1290. The firm says several investor questions and concerns are similar to the debate on the stock heading into the obesity readout, including pharmacokinetics questions and their implications for efficacy and safety, whether GSBR-1290 has full coverage for once-daily dosing, and questions about nausea/vomiting. Cantor’s analysis suggests there is no flattening of weight loss at week-12 among new patients, which has been a key investor pushback. The firm maintains bullish views on Structure and has more conviction that GSBR-1290 is competitive with Eli Lilly’s (LLY) orforglipron on efficacy and safety post its analysis. It sees the recent stock weakness as “highly overdone” and recommends investors buy Structure Therapeutics. Cantor has an Overweight rating on the shares with a $65 price target.

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