Andy Hsieh, an analyst from William Blair, has initiated a new Buy rating on Aardvark Therapeutics, Inc. (AARD).
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Andy Hsieh has given his Buy rating due to a combination of factors including Aardvark Therapeutics, Inc.’s innovative approach in developing treatments for Prader-Willi syndrome (PWS) and obesity. The company’s lead candidate, ARD-101, is an oral therapy targeting bitter taste receptors in the gastrointestinal tract, which promotes satiety through cholecystokinin signaling and GLP-1 secretion. This novel mechanism is seen as having a strong biological rationale and differentiation, particularly for PWS.
Furthermore, the combination therapy ARD-201, which includes a DPP-4 inhibitor, could enhance efficacy by preventing incretin degradation. With ARD-101 in Phase III trials for PWS and ARD-201 targeting the vast obesity market, Aardvark presents significant upside potential. The global total addressable market for PWS is estimated at $10 billion, while the obesity market could reach $100 billion, offering substantial growth opportunities. Anticipated clinical trial results in the coming years could further validate Aardvark’s strategic positioning and enhance investor confidence.
Hsieh covers the Healthcare sector, focusing on stocks such as Exelixis, Corbus Pharmaceuticals, and Terns Pharmaceuticals. According to TipRanks, Hsieh has an average return of 14.5% and a 47.17% success rate on recommended stocks.
In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $40.00 price target.