Ventyx Surges 130.8% as Piper Highlights Potential Against Obesity | Momentum Investing
1min read Shares of Ventyx Biosciences (NASDAQ:VTYX) climbed ~86% in the morning hours on Wednesday as Piper Sandler set a $21 price target on the clinical-stage biotech, citing its potential against obesity in a fast-growing market dominated by Eli Lilly (LLY) and Novo Nordisk (NVO).
Analyst Yasmeen Rahimi issued an Overweight rating on the Encinitas, California-based biopharma, highlighting its NLRP3 inhibitor VTX3232.
She argued that a similar drug from a privately held biotech company called NodThera showed weight loss results comparable to NVO"s obesity therapy semaglutide in pre-clinical studies recently.
"Overall, we believe this represents a strong positive read-through to VTYX, which has their VTX3232 currently in development for neuroinflammatory disorders like Parkinson"s disease," Rahimi wrote.
While Wall Street has yet to model VTX3232"s potential, "we believe this asset provides major upside in the blockbuster obesity space," she added.
Her bullish view on VTYX comes as the company runs a Phase 1 trial for VTX3232 in healthy volunteers, with data expected in Q1 2024.
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