8. Apogee Therapeutics, Inc. (NASDAQ:APGE)
Number of Hedge Fund Holders: 30
Year-to-Date Share Price Gains: 101.02%
Average Price Target Upside: 46.57%
Apogee Therapeutics, Inc. (NASDAQ:APGE) is a clinical-stage biotechnology company focused on developing innovative biologics for treating various inflammatory and immunological conditions, including atopic dermatitis (AD), asthma, and chronic obstructive pulmonary disease (COPD).
Its antibody programs aim to address the shortcomings of current therapies by targeting established mechanisms and using advanced antibody engineering to enhance their effectiveness and longevity.
The company’s lead program, APG777, is targeted for atopic dermatitis, a major and under-addressed market. According to Future Market Insights, revenue generated by atopic dermatitis treatments was $13.44 billion in 2023 and is expected to increase by 12% this year to $15.05 billion. Moreover, it is expected to reach $45.50 billion by 2034 at a compound annual growth rate of 11.7% during the period from 2024 to 2034.
With four proven targets in its lineup, Apogee (NASDAQ:APGE) seeks to provide better effectiveness and dosing using both single therapies and combinations of antibodies. By using its broad range of programs and knowledge, it is dedicated to offering valuable options for patients who do not get enough help from current treatments.
In the second half of 2025, it plans to release 16-week proof-of-concept data for APG777. For APG808, a novel antibody targeting IL-4Rα for the treatment of COPD, interim Phase 1 data is expected in the fourth quarter of 2024.
Additionally, the company will launch the APG990 trial, focused on atopic dermatitis and other inflammatory diseases, with healthy volunteers in the third quarter of 2024.
Recently, Apogee (NASDAQ:APGE) expanded its portfolio with APG333, a new antibody targeting thymic stromal lymphopoietin (TSLP), to improve treatment effectiveness across various respiratory conditions, which is anticipated to begin clinical trials in 2025.
In addition, the company reported a strong cash position of $790 million in Q2, which should support its operations through 2028.
It is one of the best hot stocks to buy as it has been covered by 7 analysts with an average price target of $84, representing an upside of 46.57%, as of October 1. All 7 analysts keep a Buy-equivalent rating on the stock.
On September 30, BTIG analyst Julian Harrison maintained a Buy rating on Apogee’s (NASDAQ:APGE) stock with an $81 price target. His positive outlook stems from various factors related to the company’s APG808 program and its market positioning.
The recent FDA approval of Dupixent for treating COPD with eosinophilic phenotype reduces the risk associated with developing APG808, as it targets a similar patient group, highlighting the acceptance of biologic therapies in the COPD market.
In addition to that positive results from the Phase 1 trials of APG777 also support this view because they share modifications that allow for longer-lasting effects, which could mean less frequent dosing compared to current treatments.
Harrison pointed out the large market for APG808, especially for eosinophil-driven COPD patients who need better options. His recommendation suggests that positive interim data could improve patient care and help the drug reach more people.
