SVB starts Structure Therapeutics at OP; PT $33


SVB Securities initiated coverage of Structure Therapeutics (NASDAQ:GPCR) with an “outperform” rating and $33 price target. The stock closed at $24 on Feb. 27.

“Our investment thesis is that the company’s platform and pipeline offer significant value creation potential, including its oral GLP-1 candidate for diabetes/obesity, which is in Phase 1b/2a,” writes analyst David Risinger.

Structure Therapeutics is developing oral small molecules with ideal binding properties that can deliver biologic-like efficacy and specificity.

The company’s most advanced pipeline candidate is GSBR-1290, an oral GLP-1 for diabetes and obesity, which is expected to have exclusivity through 2041 and beyond. It also is evaluating a GIPR/GLP-1R dual incretin, which is in preclinical development.

Mr. Risinger said the company expects to advance its APJR agonist, ANPA-0073, for idiopathic pulmonary fibrosis or pulmonary arterial hypertension to Phase 2 in 2024 after completing bridging studies from capsule to tablet formulation. Initial Phase 1 data for ANPA-0073 indicated dose-proportional PK with a tolerable safety profile.

“The APJR pathway is previously unexplored in either target indication but could prove to be potentially clinically meaningful,” Mr. Risinger added.