On Wednesday, May 21, BMO Capital Markets reaffirmed its “Outperform” rating on Tourmaline Bio, Inc. (NASDAQ:TRML) with a price target of $35.
The firm believes that the market’s negative reaction to Phase II data for the company’s drug, Paci, was excessive. BMO believes that Paci, which is given on a quarterly basis (Q3M), is comparable to that of a competitor’s monthly treatment (Q1M). This could make Paci a best-in-class option.
A scientist in a laboratory coat studying a test tube, showing the biotechnology company’s clinical-stage therapies.
The analyst pointed out that some concerns caused Tourmaline Bio, Inc.’s share price to drop. These included Paci’s placebo-adjusted profile showing about a 73% reduction in C-reactive protein (CRP), which is less than about 84% for the competitor, along with a COVID-related death. However, according to BMO, low levels of interleukin-6 (IL-6), linked to better COVID outcomes, should also be taken into account when determining Paci’s profile.
BMO also reviewed pharmacokinetic (PK), pharmacodynamic (PD), and safety data, arguing that these further support Paci’s unique profile and should help ease investor concerns.
Tourmaline Bio, Inc. is a late-stage clinical biotechnology company. It focuses on developing transformative medicines to improve the lives of patients with life-altering immune and inflammatory diseases.
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