Shares of Ventyx Biosciences could surge more than 50% on a competitive slate of treatments for autoimmune diseases, according to Goldman Sachs. Analyst Chris Shibutani initiated coverage of Ventyx Biosciences with a buy rating, saying the company has a promising new oral treatment in development for plaque psoriasis. “We think that VTYX’s fast-follower approach developing potentially best-in-class therapies for validated therapeutic targets will translate to meaningful opportunities in the commercially attractive immunology & inflammation (I & I) space,” Shibutani wrote in a Monday note. For the analyst, the main driver behind the buy rating is the firm’s VTX958, the company’s TYK2 inhibitor, which is currently in Phase 2 development, according to the note. The analyst is expecting a reading into the inhibitor as a treatment for plaque psoriasis in the fourth quarter of 2023. The TYK2 inhibitor from Ventyx Biosciences is notable, because it’s expected to have “one of the cleanest safety profiles” among its competitors. “Commercially, VTX958 is being developed for large, well-established I & I markets that generate tens of billions of dollars in annual sales,” Shibutani wrote. “We have a positive outlook that VTYX can capture significant share, specifically from advanced oral therapies and biologics, if the target profile of biologic-like efficacy in a safe, oral formulation is realized,” Shibutani added. Shares of Ventyx Biosciences have surged more than 60% in 2022. The analyst’s 12-month price target of $50 implies upside of roughly 53% from Friday’s closing price for the stock. —CNBC’s Michael Bloom contributed to this report.
