APGE: Increasing Price Target on Acquisition by ABBV

研报英文原文证据摘录

APGE: Increasing Price Target on Acquisition by ABBV

Apogee Therapeutics

Target/Upside/Downside Scenarios Investment summary

We believe the longer-acting biologics under APGEApogee Therapeutics

development will provide meaningful differentiation from

160 125 Weeks 30JAN24 - 19JUN26 existing therapies in large I&I indications that can potentially

140 TARGETTARGET 135.00135.00 generate as much as ~$7B in out-year WW sales. By

120 pursuing substantially de-risked therapeutic targets, these

100 biologics with extended half-lives also have a higher likelihood

CURRENTCURRENT 90.3890.38

80 of delivering a desirable efficacy/safety profile without

60 unexpected AE emergence. Preclinical biomarker data from

40 combo approaches also shows potential to drive deeper

20 broader clinical benefits. That being said, at current valuation,

15m with additional AD induction data in Part B and combo data

10m

5m a bit more challenging to discern, we see zumi and combo

2024 2025 2026 F M A M J J A S O N D J F M A M J J A S O N D J F M A M J approaches' market potential and risks fairly reflected in the

APGE US Rel. S&P 500 COMPOSITE MA 40 weeks stock.

Source: Bloomberg and RBC Capital Markets estimates for Target

Valuation Key positives: (1) Well-established therapeutic targets; (2)

Our $135 price target is based on recently announced ABBV focusing on I&I markets of large revenue opportunities;

acquisition deal terms. Our price target supports our Sector (3) thorough de-risking data generation to mitigate risks

Perform rating. in subsequent clinical data; (4) dosing convenience is a

meaningful market driver to promote uptake.

Upside scenario

Key potential catalysts: (1) Closing of ABBV acquisitionGiven a deal valuing APGE at $135.11, which we see as likely