Yigal Nochomovitz, an analyst from Citi, maintained the Buy rating on Biomea Fusion. The associated price target remains the same with $7.00.
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Yigal Nochomovitz has given his Buy rating due to a combination of factors related to Biomea Fusion’s promising clinical trial results. The 52-week Phase 2 data for their drug, icovamenib, demonstrated a sustained benefit in reducing HbA1c levels, which persisted for approximately 40 weeks after stopping the treatment. This suggests that icovamenib could serve as a viable alternative to current chronic treatments for type 2 diabetes.
Additionally, the data showed potential for icovamenib to preserve and restore beta cell function while enhancing GLP-1 receptor activity. Despite the small sample size, the results in both SIDD and post-GLP-1 patients were significant, with a placebo-adjusted HbA1c reduction of about 1.8%. These findings support the mechanism of action and increase confidence in the drug’s success in future trials, contributing to the positive outlook and high expected share price return.
Nochomovitz covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Biomea Fusion, and ProKidney. According to TipRanks, Nochomovitz has an average return of 8.4% and a 44.47% success rate on recommended stocks.
In another report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $9.00 price target.