Goldman Sachs initiates Aclaris at Buy citing potential in lead asset

Aclaris Therapeutics (NASDAQ:ACRS), a biopharma focused on immune-inflammatory diseases, ticked higher on Thursday after Goldman Sachs launched its coverage with a Buy recommendation and a $25 per share target, citing prospects for its lead candidate zunsemetinib.
The analysts led by Corinne Jenkins have favorable views on the candidate ahead of its proof-of-concept data for rheumatoid arthritis (RA) expected in 2023.
Aclaris (ACRS) is evaluating zunsemetinib with cancer drug methotrexate in subjects with moderate to severe RA in a Phase 2b trial, which is on track for an H2 2023 topline readout.
Jenkins and analysts think that initial data expected from Phase 2a trials for additional indications (hidradenitis suppurativa, psoriatic arthritis) will prove zunsemetinib's "pipeline-in-a-product potential" from H1 2023.
Despite competition from generics and biosimilars, the analysts estimate over $5B peak sales opportunity for zunsemetinib across indications. They note its potential to secure a modest market share in these large indications given features such as daily oral dosing and clean safety profile.
Read: In October, BTIG also initiated coverage on Aclaris (ACRS) with a Buy recommendation citing potential in zunsemetinib.