Eledon Pharmaceuticals’ Tegoprubart: Promising Safety Profile and Market Potential Despite eGFR Setback

In a report released today, Rami Katkhuda from LifeSci Capital maintained a Buy rating on Eledon Pharmaceuticals, with a price target of $4.00.

Rami Katkhuda has given his Buy rating due to a combination of factors, primarily focusing on the recent findings from Eledon Pharmaceuticals’ Phase II BESTOW study. The study evaluated the safety and efficacy of tegoprubart compared to tacrolimus in kidney transplant patients, showing that tegoprubart provided robust kidney function 12 months post-transplant, achieving one of the highest eGFR levels recorded in such studies. However, the eGFR benefit was not statistically significant when compared to tacrolimus, possibly due to an imbalance in the quality of donor kidneys at baseline.
Despite this, tegoprubart demonstrated a differentiated safety profile, with fewer metabolic, neurologic, and cardiovascular toxicities than typically seen with tacrolimus, which is the current standard of care. Eledon plans to advance to a Phase III program for tegoprubart in late 2026, following discussions with regulators. Although the lack of eGFR superiority is a setback, the noninferior efficacy and significant safety advantages present a viable commercial opportunity for tegoprubart in kidney transplantation. Consequently, market penetration assumptions for tegoprubart have been adjusted, and the price target has been updated to $4 per share.