BioTuesdays

Brookline starts Forte Biosciences at buy; PT $90

Brookline Capital Markets launched coverage of Forte Biosciences (NASDAQ:FBRX) with a “buy” rating and $90 price target. The stock closed at $26.69 on Aug. 27.

Forte Biosciences is developing FB-401, a topical live biotherapeutic for treating atopic dermatitis, or eczema. FB-401 is a combination of three strains of gram-negative bacteria, Roseomonas mucosa

Analyst Kumaraguru Raja writes that FB-401 leads to disease modifying effects in atopic dermatitis as it drives tissue repair and reduces inflammation by targeting the anti-inflammatory pathways. 

“In our view, FB-401 is expected to have a differentiated product profile, compared with corticosteroids, PDE-4 inhibitors, and immunomodulators, with high efficacy and comparatively better side effect profile,” he said. 

FB-401 is in a Phase 2 trial with patient enrollment expected near term and data expected in mid-2021. 

“We foresee a favorable risk-reward as FB-401 advances through the clinic as there is significant unmet need for convenient, topical, less frequent dosing, long acting, non-steroid based therapeutics for dermatological diseases,” Mr. Raja said.

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