Stifel has initiated coverage on Inozyme Pharma (INZY), a company developing treatments for rare diseases, with a “Buy” rating and a price target of $16. The investment firm is particularly optimistic about INZ-701, Inozyme’s lead candidate.
INZ-701 is an ENPP1 Fc fusion protein enzyme replacement therapy (ERT) designed to increase the levels of PPi and adenosine, molecules that are crucial for various bodily functions. This therapy holds potential for treating multiple diseases caused by deficiencies in these molecules. Currently, INZ-701 is undergoing clinical development for three conditions: ENPP1 Deficiency, ABCC6 Deficiency, and calciphylaxis.
In July, the FDA granted fast track designation to INZ-701 for the treatment of ABCC6 Deficiency, a rare genetic disorder that causes mineral build-up in elastic tissue. This build-up can affect the eyes, skin, and vasculature. Low adenosine levels can also contribute to blood vessel narrowing and problems maintaining blood vessel health.
While these target indications are rare, Stifel believes INZ-701 has the potential to be effective for a range of conditions, highlighting its “pipeline-in-a-product” potential. By year-end 2024, Inozyme expects to reach an agreement on a pivotal study in pediatric patients with ABCC6 Deficiency.
The Stifel analyst acknowledged the challenges associated with rare diseases, stating that ENPP1 and ABCC6 deficiencies are not widely known among the public or investors. As such, the analyst expects the primary challenge for investors will be the clinical trial and regulatory risks. However, Stifel remains optimistic, anticipating that interim data from Phase 1b ENERGY-1 (ENPP1 deficiency) and Phase 1 SEAPORT-1 (calciphylaxis) studies by the end of 2024 could instill investor confidence.
Inozyme Pharma stock surged 8.06% to $5.63 at publication Thursday, following the news of Stifel’s initiation.
