Ibio, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Patrick Dolezal from LifeSci Capital maintained a Buy rating on the stock and has a $5.00 price target.
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Patrick Dolezal has given his Buy rating due to a combination of factors that strengthen the investment case for iBio. The recent early-stage results from Arrowhead’s ARO-INHBE program, which targets activin E in obese patients, demonstrated robust, dose-dependent reductions in circulating activin E levels, lending important mechanistic validation to this biological pathway. These data showed meaningful declines in visceral adipose tissue over time, along with favorable shifts in body composition, such as increases in lean mass and substantial decreases in liver fat, which help address prior safety concerns for this drug class. Taken together, this external clinical evidence provides a strong scientific and translational read-through to iBio’s IBIO-610 antibody, which is designed to inhibit the same activin E target.
Patrick Dolezal views this read-through as materially de-risking the underlying mechanism of action for IBIO-610 and improving confidence in the program’s potential efficacy and safety profile in obesity. The positive signal from a mechanistically similar, but distinct, approach supports the notion that activin E suppression can favorably alter fat distribution without exacerbating hepatic fat accumulation, a key perceived risk in metabolic therapies. Coupled with iBio’s current capitalization profile, cash runway, and the strategic value of holding a monospecific activin E–targeting asset at this stage of the competitive landscape, Dolezal believes the risk/reward skew justifies a Buy recommendation on IBIO shares.
Dolezal covers the Healthcare sector, focusing on stocks such as Structure Therapeutics, Inc. Sponsored ADR, Kodiak Sciences, and Ibio. According to TipRanks, Dolezal has an average return of 17.6% and a 43.93% success rate on recommended stocks.