Acelyrin's Izo Fails Phase 2b/3 Trial in Uveitis; Wells Fargo Adjusts Price Target

Key Insights

• Acelyrin's Phase 2b/3 trial of izokibep (izo) in uveitis has failed, leading to the removal of its contribution from Wells Fargo's financial model.
• Wells Fargo has lowered its price target for Acelyrin from $15 to $13, while maintaining an Overweight rating on the shares.
• The firm believes the downside impact on Acelyrin's stock will be limited due to the market not assigning significant value to the uveitis program.

Acelyrin (SLRN) has announced the failure of its Phase 2b/3 trial evaluating izokibep (izo) for the treatment of uveitis. The news prompted Wells Fargo to lower its price target on Acelyrin shares from $15 to $13, while reaffirming an Overweight rating. According to the firm, the unsuccessful trial outcome should have a limited negative impact on the stock, as the market had not previously factored in substantial value for the izokibep uveitis program.

Wells Fargo is removing the izokibep uveitis contribution from its financial model, indicating that the drug will not be developed further for this indication. The analyst note suggests a strategic shift away from uveitis following the trial results.

Impact on Acelyrin's Pipeline

The failure in uveitis does not impact Acelyrin's other ongoing clinical programs. The company is focusing on other indications for izokibep, including hidradenitis suppurativa and psoriatic arthritis. Further updates on these programs are anticipated in the coming months.