Astria Therapeutics Inc.'s (ATXS:NASDAQ) investigational drug STAR-0215 could potentially compete with the current standard of care treatment, based on Phase 1a trial results, according to a recent Oppenheimer survey of physicians, analyst Hartaj Singh reported in an October 30 note. STAR-0215 is designed as a long-acting treatment to prevent hereditary angioedema (HAE) attacks.
"Majority respondents (greater than 95%) felt excited for a 3-month/6-month dosing with acceptable safety/efficacy profile," Singh wrote. "We remain bullish."
Stock Undervalued, 530% Return
As such, Oppenheimer maintained its Outperform rating and $30 per share target price on the Massachusetts-based biopharma, noted Singh. The current price, in comparison, is about US$4.76 per share.
"Astria's shares are down 68% versus the SPDR S&P Biotech exchange-traded fund, down 20%, year to date," Singh added. "We view the stock as underappreciated."
The difference between the current and target prices implies a substantial 530% potential return for investors of Astria.
Now is the time to add to positions given that each of two sets of upcoming data on STAR-0215 could boost Astria's stock price, wrote Singh. One batch, the results of the six-month dosing cohorts, is anticipated by year-end 2023. The other set, proof of concept data, is due out before mid-2024.
About the Survey
Singh explained that Oppenheimer surveyed 30 physicians, including allergists/immunologists, dermatologists, internists, and family practitioners, who treat more than 20 HAE patients per year.
The purpose of the survey was to gain these doctors' insights on various aspects of the treatment of HAE, a rare genetic disorder and area of unmet need, and on STAR-0215.
Key Takeaways
Singh summarized the survey findings and presented Oppenheimer's related deductions. Here they are:
1) Trend in treatment type. About 72% of HAE patients are receiving treatment. Of these, 25% are getting prophylactic treatment, another 25% are receiving acute treatment, and the remaining 50% are getting both.
"Given about 90% HAE patients with mono/dual therapy, we believe maintaining acute and prophylaxis as two types of treatment is a consistent trend," Singh wrote.
2) Predominance of Takhzyro treatment. About 50% of patients receiving treatment get it through injections. Of this population, half are on Takhzyro, the standard of care for HAE attack prevention. This bodes well for STAR-0215, Singh pointed out, given its equivalent-to-better risks versus benefits profile and its potentially longer period between doses.
"Takhzyro's market share could be an initial target, in our view," added Singh.
3) Physician awareness of STAR-0215. Of the physicians who responded to the survey, 70% had not heard of Astria's investigative prophylactic HAE drug. Further, about 70% of respondents indicated the burden of current therapy, financially, economically, and emotionally, is concerning to their HAE patients.
"We think Astria has room to educate HAE physicians and patients and get more exposure for STAR-0215 to [the] HAE community," wrote Singh.
4) Physician attitudes toward STAR-0215. The survey showed that about 95% of the responding physicians have an "above average impression" of STAR-0215's Phase 1a safety and efficacy data. About 13% expressed concern about the rate of side effects that occurred with STAR-0215 and wanted larger trials.
"Varied expectations around HAE attack reduction among respondents indicates that robust proof of concept (mid-2024) risk/benefit data could impress," Singh noted.
| Want to be the first to know about interesting Biotechnology / Pharmaceuticals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
- This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
For additional disclosures, please click here
Disclosures for Oppenheimer, Astria Therapeutics, October 30, 2023
Oppenheimer & Co. Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
Analyst Certification - The author certifies that this research report accurately states his/her personal views about the subject securities, which are reflected in the ratings as well as in the substance of this report. The author certifies that no part of his/her compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report.
Potential Conflicts of Interest: Equity research analysts employed by Oppenheimer & Co. Inc. are compensated from revenues generated by the firm including the Oppenheimer & Co. Inc. Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. Oppenheimer & Co. Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, Oppenheimer & Co. Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers. In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, Oppenheimer & Co. Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.
Company-Specific Disclosures: Important disclosures, including price charts, are available for compendium reports and all Oppenheimer & Co. Inc.-covered companies by logging on to https://www.oppenheimer.com/client-login.aspx or writing to Oppenheimer & Co. Inc., 85 Broad Street, New York, NY 10004, Attention: Equity Research Department, Business Manager.
Other Disclosures This report is issued and approved for distribution by Oppenheimer & Co. Inc. Oppenheimer & Co. Inc. transacts business on all principal exchanges and is a member of SIPC. This report is provided, for informational purposes only, to institutional and retail investor clients of Oppenheimer & Co. Inc. and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. The securities mentioned in this report may not be suitable for all types of investors.
This report does not take into account the investment objectives, financial situation or specific needs of any particular client of Oppenheimer & Co. Inc. Recipients should consider this report as only a single factor in making an investment decision and should not rely solely on investment recommendations contained herein, if any, as a substitution for the exercise of independent judgment of the merits and risks of investments. The analyst writing the report is not a person or company with actual, implied or apparent authority to act on behalf of any issuer mentioned in the report. Before making an investment decision with respect to any security recommended in this report, the recipient should consider whether such recommendation is appropriate given the recipient's particular investment needs, objectives and financial circumstances. We recommend that investors independently evaluate particular investments and strategies, and encourage investors to seek the advice of a financial advisor. Oppenheimer & Co. Inc. will not treat non-client recipients as its clients solely by virtue of their receiving this report.
Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance of any security mentioned in this report. The price of the securities mentioned in this report and the income they produce may fluctuate and/or be adversely affected by exchange rates, and investors may realize losses on investments in such securities, including the loss of investment principal. Oppenheimer & Co. Inc. accepts no liability for any loss arising from the use of information contained in this report, except to the extent that liability may arise under specific statutes or regulations applicable to Oppenheimer & Co. Inc. All information, opinions and statistical data contained in this report were obtained or derived from public sources believed to be reliable, but Oppenheimer & Co. Inc. does not represent that any such information, opinion or statistical data is accurate or complete (with the exception of information contained in the Important Disclosures section of this report provided by Oppenheimer & Co. Inc. or individual research analysts), and they should not be relied upon as such. All estimates, opinions and recommendations expressed herein constitute judgments as of the date of this report and are subject to change without notice. Nothing in this report constitutes legal, accounting or tax advice. Since the levels and bases of taxation can change, any reference in this report to the impact of taxation should not be construed as offering tax advice on the tax consequences of investments. As with any investment having potential tax implications, clients should consult with their own independent tax adviser.
This report may provide addresses of, or contain hyperlinks to, Internet web sites. Oppenheimer & Co. Inc. has not reviewed the linked Internet web site of any third party and takes no responsibility for the contents thereof. Each such address or hyperlink is provided solely for the recipient's convenience and information, and the content of linked third party web sites is not in any way incorporated into this document. Recipients who choose to access such third-party web sites or follow such hyperlinks do so at their own risk. This research is distributed in the UK and elsewhere throughout Europe, as third party research by Oppenheimer Europe Ltd, which is authorized and regulated by the Financial Conduct Authority (FCA). This research is for information purposes only and is not to be construed as a solicitation or an offer to purchase or sell investments or related financial instruments. This research is for distribution only to persons who are eligible counterparties or professional clients. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. In particular, this material is not for distribution to, and should not be relied upon by, retail clients, as defined under the rules of the FCA. Neither the FCA's protection rules nor compensation scheme may be applied. https://opco2.bluematrix.com/sellside/MAR.action Distribution in Hong Kong: This report is prepared for professional investors and is being distributed in
Hong Kong by Oppenheimer Investments Asia Limited (OIAL) to persons whose business involves the acquisition, disposal or holding of securities, whether as principal or agent. OIAL, an affiliate of Oppenheimer & Co. Inc., is regulated by the Securities and Futures Commission for the conduct of dealing in securities and advising on securities. For professional investors in Hong Kong, please contact researchasia@opco.com for all matters and queries relating to this report. ESG Scores: ESG scores from Refinitiv are designed to transparently and objectively measure a company’s relative ESG performance, commitment and effectiveness, based on company-reported data. This covers 10 main themes including emissions, environmental product innovation, human rights, shareholders and so on. Ratings are available on close to 10,000 companies globally, with time-series data going back to 2002. The percentile rank scores are simple to understand and transparent. They are benchmarked against The Refinitiv Business Classifications (TRBC – Industry Group) for all environmental and social categories, as well as the controversies score. They are also measured against the country of incorporation for all governance categories. Please note that all ESG ratings are independent of Oppenheimer stock ratings. They are intended to provide supplemental information regarding ESG for our covered companies. ESG ratings do not have any impact on the stock rating. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Oppenheimer & Co. Inc. Copyright © Oppenheimer & Co. Inc. 2023
