BTIG downgrades Apogee Therapeutics stock rating after AbbVie deal
BTIG has lowered its rating on Apogee Therapeutics Inc (NASDAQ:APGE) stock to Neutral from Buy after the company's acquisition by AbbVie Inc. Shareholders recently approved the acquisition, which is valued at $10.9 billion, or $135.11 per share. The stock is currently trading at $134.69, close to its 52-week high of $134.88, representing a 267% return over the past year.
Apogee's lead drug candidate, zumilokibart, is in Phase III trials and has potential for use in atopic dermatitis, asthma, and eosinophilic esophagitis due to its efficacy and dosing regimen. BTIG analyst Julian Harrison believes AbbVie can capitalize on its dermatology channels to compete with Apogee's drug beyond JAK inhibitors.
This acquisition marks the first successful exit from Paragon Laboratories for BTIG and is expected to have positive effects on other Paragon legacy partner companies. Other analysts, such as Mizuho and UBS, have also downgraded Apogee Therapeutics to Neutral, citing the acquisition price as justified. Apogee has signed agreements with Paragon Therapeutics to develop antibodies targeting the interleukin 31 receptor, further bolstering its pipeline.
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