BTIG Reiterates Buy Rating on Acumen Pharmaceuticals, Inc. (ABOS)

BTIG analyst Thomas Schrader reiterated a Buy rating and $11.00 price target on Acumen Pharmaceuticals, Inc. (NASDAQ: ABOS).

The analyst comments "Overall, we expect the donanemab AdCom to be a positive event for Acumen and other developers of next-generation plaque removal therapies with the panel voicing a broad agreement that the approach provides benefits to patients with the significant caveat that these benefits are at the expense of safety issues. As a result, we expect increased interest in Aβ-removal approaches that might be safer and still maintain the patient benefits. We still need more data to know the detailed safety risks of ACU193 — at the lowest efficacious dose — but data to date suggest that ACU193 is safer than lecanemab and much safer than donanemab. Based on detailed molecular evidence (cells and animals), we believe this improved safety is based on a binding specificity for ACU193 that is higher for Aβ-oligomers relative to Aβ-plaque. This detailed mechanism may be validated over time, but for now, we think the most important point is that binding specificity looks to be the only viable way to improve safety after subcutaneous delivery approaches had no measurable effects on ARIA rates. Another issue likely to be discussed includes stopping donanemab once plaque levels fall below certain levels. This idea is contentious, as the toxic AβO species begin to build up after antibodies are stopped. However, we don't expect this issue to be a dealbreaker as many drugs are approved (particularly in oncology) based on a demonstration of benefit without initially showing that this benefit has been maximized. Similarly, the lack of benefit in high Tau patients seems likely to inform use over time, but less likely to result in a restricted indication. Again, oncology approvals are relevant here where drugs have been approved for all patients in the ITT group despite a lack of benefit in certain subgroups (NERLYNX is a good example)."

For an analyst ratings summary and ratings history on Acumen Pharmaceuticals, Inc. click here. For more ratings news on Acumen Pharmaceuticals, Inc. click here.

Shares of Acumen Pharmaceuticals, Inc. closed at $2.62 yesterday.

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