Piper Sandler initiates coverage of biotech stocks

Piper Sandler initiated coverage of several biotech stocks in a note Friday, with all, barring one, being assigned Overweight ratings.

Arcellx (ACLX), Allogene Therapeutics (NASDAQ:), Elevation Oncology (ELEV), Immunome Inc. (IMNM), Ocular Therapeutix (NASDAQ:), Solid Biosciences (), and Sarepta Therapeutics (NASDAQ:) were all assigned Overweight ratings:

ACLX was highlighted as having a potentially differentiated profile of anito-cel as a treatment in MM.

For ALLO, Piper Sandler stated: “The company’s pivot in January sets it on the right course and has multiple shots on goal across 1L LBCL consolidation, CLL, and autoimmune.”

The firm noted that ELEV is developing EO-3021, a Claudin 18.2 targeted ADC, for the treatment of gastric/GEJ cancers and expects to provide a data update from the U.S. Phase 1 trial in mid-Q3.

For IMNM, Piper Sandler wrote: “The company is developing AL-102 in Phase 3 trials as a treatment for desmoid tumors and early clinical data have reported strong efficacy. The ROR1 ADC and the FAP radioligand have differentiating designs that should translate in the clinic.”

OCUL’s coverage was transferred with an Overweight rating. Piper Sandler stated that “the ongoing SOL-1 testing Axpaxli in wet AMD is built for success.”

SLDB’s gene therapy design is said to potentially derisk on safety while providing increased cardiac expression. “Phase 1 has started and a clean bill on safety this summer could be a catalyst for shares,” said Piper Sandler.

Piper Sandler is bullish on SRPT as it likes the prospects for Elevidys to receive an expanded DMD label on its PDUFA.

Apellis Pharmaceuticals (NASDAQ:) was the only stock given a Neutral rating, with Piper Sandler said is driven by dampened enthusiasm for Syfovre because of vasculitis events. “Our survey suggests the majority of ophthalmologists expect to decrease use of Syfovre due to these AEs,” they wrote.