Jefferies initiated coverage on Avalyn Pharma (NASDAQ:AVLN) with a Buy rating and a $52 price target, citing efficacy data from the company’s AP01 treatment for progressive fibrosing interstitial lung diseases.
The target represents an 80% upside from the current stock price of $28.84, with the company carrying a market capitalization of $1.21 billion.
In the ATLAS study, AP01 at 100mg twice daily showed a forced vital capacity decline of 0.4% per year compared to 6-8% per year in natural history, an 83% reduction.
Safety profile showed zero gastrointestinal discontinuations, one resolved liver function test elevation, and zero bronchospasm events across 4.5 years and 100 patients.
Avalyn is pursuing regulatory approval through the 505(b)(2) pathway. Patent protection extends through September 2041.
