Wells downgrades Ventyx to Equal Weight on ‘major setback’

Wells Fargo downgraded Ventyx Biosciences (VTYX) to Equal Weight from Overweight with a price target of $8, down from $77. The analyst cites the company’s announcement that VTX958’s Phase 2 data while positive, were not competitive in severe plaque psoriasis, for the downgrade. This reduces confidence in VTX958’s differentiation relative to other TYK2s and potential in other indications, the analyst tells investors in a research note. Wells says this a “major setback” for its thesis as the programs were a considerable amount of its valuation. While VTX958’s Ph2 in Crohn’s is still ongoing, it’s very difficult to believe with the existing data that VTX958 will deliver better efficacy than Bristol Myers’ (BMY) deucra in Crohn’s, which failed in this indication, the analyst tells investors in a research note