Tourmaline Bio might see weakness today after Roche MG data, says Truist

Truist says Tourmaline Bio (TRML) might see weakness today after Chugai Pharmaceutical reported topline data from the Phase 3 LUMINESCE study of Enspryng, an investigational treatment for generalized myasthenia gravis, or MG. Topline Enspryng data in MG reached statistical significance, but did not meet Roche’s (RHHBY) expectations for clinical benefit, the analyst noted. While Tourmaline has not initiated an MG program, the company said their decision to pursue MG will be influenced by Enspryng, the analyst additionally noted. The firm awaits details for the Enspryng MG data given that TOUR006 is a differentiated IL-6 product with improvements on ADAs compared to Roche’s IL-6, according to Truist, who also thinks this news could be a positive for Buy-rated Immunovant (IMVT) and Roivant (ROIV) and the FcRn space given that Roche may not pursue MG, which would lower the competition. Truist has a Buy rating and $74 price target on Tourmaline shares, which are down $13.65, or 31%, to $31.02 in pre-market trading.