Key insights
- Raymond James initiated coverage on Aktis Oncology (AKTS) with a Strong Buy rating and a $40 price target, citing its differentiated miniprotein-enabled radioligand therapy platform. The firm projects significant revenue potential for Aktis's lead programs, AKY-1189 and AKY-2519, with initial clinical data expected next year. A research deal with Eli Lilly (LLY), a trillion-dollar company with strong financial health, adds further validation and potential upside. This positive analyst coverage and partnership news for a biotech firm could signal investor confidence in the sector,
Investing.com - Raymond James initiated coverage on Aktis Oncology (NASDAQ:AKTS) with a Strong Buy rating and a price target of $40.00, the firm said Monday.
The firm highlighted the company’s miniprotein-enabled radioligand therapy platform as highly differentiated in the targeted radiopharma field. Miniproteins are small peptides engineered to fold into stable tertiary structures, potentially offering advantages on efficacy and safety compared to small molecule and antibody targeting groups used in radioligand therapies today.
Aktis Oncology has two lead programs in development. The nectin-4 targeting radioligand therapy AKY-1189 and the B7-H3 targeting radioligand therapy AKY-2519 are both expected to report initial clinical data next year.
Raymond James projects opportunities exceeding $1 billion for AKY-1189 in metastatic urothelial carcinoma and AKY-2519 in metastatic castration resistant prostate cancer. The firm forecasts total U.S. revenue of $221 million, $500 million, $888 million, and $1.335 billion in fiscal years 2031 through 2034, respectively.
The firm noted additional upside potential from expansion of the two assets into other cancer types, new radioligand therapies in the pipeline, and a research deal with Lilly. The partnership with Lilly, a pharmaceutical giant with a market capitalization of $1.01 trillion and revenue growth of 47%, could provide significant validation and resources for Aktis’s platform development. According to InvestingPro, which tracks over 1,400 US equities with comprehensive analysis, Lilly maintains a "GREAT" financial health score.
In other recent news, Eli Lilly and Company has received approval from the U.S. Food and Drug Administration for a new dosing regimen of its drug Ebglyss, allowing for one injection every eight weeks for patients with moderate-to-severe atopic dermatitis. This new regimen reduces the number of annual maintenance injections to six, offering a more convenient treatment option. Additionally, Eli Lilly’s obesity and diabetes drug Retatrutide showed promising results in recent trials, with a 12mg dose achieving approximately 30% weight loss. Both Bernstein and Truist Securities have reiterated an Outperform and Buy rating, respectively, for Eli Lilly, highlighting the potential of Retatrutide’s efficacy in weight loss. Bernstein set a price target of $1,300, while Truist’s target stands at $1,281. Furthermore, BMO Capital also reiterated an Outperform rating with a $1,300 price target following early Phase 1 data for Eli Lilly’s JAK2 inhibitor, AJ1-11095, which showed competitive results. These developments underscore Eli Lilly’s ongoing efforts to expand its product offerings and strengthen its position in the healthcare market.
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