Citigroup Maintains Strong Buy Rating for Biomea Fusion

Biomea Fusion Inc (NASDAQ: BMEA), a preclinical-stage biopharmaceutical company, has had its Strong Buy rating maintained by Yigal Nochomovitz from Citigroup. The analyst has also raised the stock's price target from $53.00 to $90.00.

The updated data from the first two cohorts of patients with Type-2 Diabetes enrolled in the Phase II portion of its ongoing Phase I/II clinical study (COVALENT-111) of BMF-219 indicates that the drug has passed a critical test of drug worthiness. The data shows durable and continued improvement in glycemic control in follow-up visits through Week 12 compared to Week 4, eight weeks after the last dose of BMF-219. Thomas Butler, Biomea Fusion's CEO, believes that these results "further support BMF-219’s ability to address a root cause of the disease, beta cell loss."

According to Nochomovitz, even the most skeptical investors will find it difficult to discredit Biomea Fusion's "total transparency in presenting compelling patient-level data across key metrics." He is now predicting a 65% probability of success in getting BMF-219 to market and an increase to 3% peak market share in the drug's use in the treatment of Type-2 diabetes. The analyst named Biomea Fusion, Inc. as his firm's "Top Pick in SMID Biotech."

As a preclinical-stage biopharmaceutical company, Biomea Fusion Inc still has a long way to go before it can bring its drugs to market. However, the analyst's Strong Buy rating and raised price target indicate that the company's current progress is promising.

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