Jefferies starts BioAge Labs with 'buy' on novel obesity drug

BioAge Labs

21/10/2024 12:34

** Jefferies initiates coverage of drug developer BioAge
Labs  BIOA.O  with "buy" rating and price target of $42 
    ** Brokerage says BIOA's lead candidate, azelaprag, has a
novel mechanism to be used as an additional therapy with popular
GLP-1 drugs for obesity and could help address certain unmet
needs in an increasingly competitive market
    ** BIOA plans to test its drug along with Eli Lilly's
 LLY.N  Zepbound and Novo Nordisk's  NOVOb.CO  Wegovy in
mid-stage studies
    ** Jefferies models peak revenues of nearly $2 bln for the
drug; says it targets "energy expenditure" compared to energy
intake that other drugs target
    ** Based on early data, brokerage expects drug could help
achieve more weight loss vs with Zepbound/Wegovy alone and with
fewer side effects
    ** Jefferies says azelaprag could also help preserve muscle
mass while increasing fat loss and provide a convenient oral
dosing alternative
    ** As of last close, stock up ~30% since Nasdaq debut on
Sept. 26

 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))