Raymond James Is Bearish On This Inflammatory Bowel Disease Player On Upcoming 'Pipeline Reset'

Raymond James downgraded Landos Biopharma Inc LABP to Market Perform from Outperform following 2Q22 earnings and the first look at NX-13 Phase 1b data in ulcerative colitis (UC).
The analyst's rating change is driven by:
- Unclear strategy for omilancor in UC/Crohn's Disease (CD) (formulation optimization needed to improve solubility).
- Lack of conviction on NX-13's early efficacy data in UC until an adequately powered study is more clearly demonstrative of efficacy.
The LAPB management team is acutely focused on prioritizing resources for their lead programs and expects to deliver a comprehensive pipeline update and strategy later this year.
Raymond James maintains that omilancor is a promising molecule that could drive value in the coming 12-18 months. However, that depends on formulation changes and "making the cut" of the pipeline review.
Earlier this month, Landos Biopharma announced topline results from its Phase 1b trial of NX-13 for ulcerative colitis as a once-daily oral therapy.
The data showed that NX-13 was well tolerated following evaluation of multiple doses over four weeks compared with a placebo.
Across the four cohorts, no serious adverse events were reported, consistent with earlier studies in healthy volunteers and preclinical models.
The company ended the June quarter with cash, cash equivalents, and marketable securities of $55.8 million.
Price Action: LABP shares closed down 1.85% at $1.06 on Friday.