Leerink Partners Starts Adagene Inc (ADAG) at Outperform

Leerink Partners analyst Daina Graybosch initiates coverage on Adagene Inc (NASDAQ: ADAG) with a Outperform rating and a price target of $7.00.

The analyst comments "● Bottom Line: We are initiating coverage on ADAG with an Outperform rating and $7 price target. Our positive view of the company and stock is grounded in enthusiasm for the company’s lead program, muzastotug (muza), which is a conditionally masked CTLA-4 antagonist. In combination with PD-1 antagonists, the program has demonstrated proof-of-concept (PoC) efficacy in relapsed / refractory (r/ r) microsatellite stable (MSS), non-liver metastatic (NLM) colorectal cancer (CRC), a large indication previously refractory to immuno-oncology (IO) therapeutic approaches. Given a wider therapeutic window (relative to unmasked anti-CTLA-4), we believe muzastotug is well positioned for development and commercial success in the r/r and earlier-line CRC settings. See HERE for our deep dive on the CTLA-4 opportunity in CRC. Adagene’s clinical experience with muzastotug also showcases the industry’s strongest demonstration of effective protease-masking and conditional activity of a potent IO therapy in the tumor microenvironment (TME). For us, this clinical experience meaningfully de-risks the company’s proteasemasking development capabilities and SAFEbodyTM platform, providing underappreciated platform value and strategic optionality. Finally, Adagene was one of the first Chinese biotech companies to operate simultaneously in China and the United States, leveraging the capabilities and opportunities in both countries. As emphasis on biotech in China increases, Adagene is well positioned to benefit from increased investment in the region."

For an analyst ratings summary and ratings history on Adagene Inc click here. For more ratings news on Adagene Inc click here.

Shares of Adagene Inc closed at $1.90 yesterday.

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