Shares of First Tracks Biotherapeutics Inc (NASDAQ:TRAX) climbed 3.8% on Wednesday following the start of coverage by Guggenheim, which issued a Buy rating and established a $100 price target for the company.
Guggenheims initiating analyst, Yatin Suneja, pointed to conviction in the anti-CD122 target and in ANB033, First Tracks lead therapeutic candidate. In the analysts view, the mechanism has potential applicability across multiple autoimmune diseases.
Suneja noted that CD122, also referred to as IL-2Rbeta/IL-15Rbeta, is one of the relatively underdeveloped targets in the autoimmunity space. The analyst highlighted early clinical signals across three specific indications - Celiac Disease, Eosinophilic Esophagitis, and Vitiligo - as evidence that the target's therapeutic opportunity may be broadening.
The CD122 receptor subunit mediates signaling for both interleukin-2 and interleukin-15. Guggenheims coverage cites genetic evidence implicating dysregulated IL-15 and IL-2 signaling in a range of autoimmune conditions, and lists several diseases associated with these pathways, including Alopecia Areata, Type 1 Diabetes, and Atopic Dermatitis in addition to the three indications already mentioned.
Within the competitive landscape, Guggenheim identifies four principal programs focused on IL-15 and CD122 biology. According to the analyst note, two of these programs employ IL-15 monoclonal antibodies while two use anti-CD122 monoclonal antibodies. Per Guggenheim, First Tracks stands out as the only publicly traded small-to-mid cap company advancing an anti-CD122 monoclonal antibody candidate.
This assessment from Guggenheim and the associated price target and Buy recommendation preceded the trading day move, which saw TRAX shares increase by 3.8% on the session.
Context and implications
The analysts emphasis on CD122 reflects a focus on a receptor shared by IL-2 and IL-15 signaling pathways, and Guggenheims commentary underscores genetic links between aberrant signaling through these cytokines and multiple autoimmune disorders. The firms view that early clinical activity in several indications widens the therapeutic aperture for an anti-CD122 approach is central to its Buy rating and $100 price target for First Tracks.
Market reaction
Following the publication of Guggenheims initiation, TRAX traded higher on the session, reflecting investor interest in the analysts assessment of the program and target biology.