Why Analyst Says Rare Disease-Focused Inozyme Pharma Stock 'Could Be Worth A Look'

Stifel initiated coverage on Inozyme Pharma Inc. INZY, saying, “This under-the-radar stock could be worth a look ahead of it.”

The company’s lead candidate, INZ-701, is an ENPP1 Fc fusion protein enzyme replacement therapy (ERT) designed to increase PPi and adenosine, enabling the potential treatment of multiple diseases caused by deficiencies in these molecules.

It is currently in clinical development for ENPP1 Deficiency, ABCC6 Deficiency and calciphylaxis.

In July, the FDA granted fast track designation to INZ-701 for ABCC6 Deficiency.

In ABCC6 Deficiency, the body develops mineral build-up in elastic tissue in the eyes, skin and vasculature due to low levels of PPi. Low adenosine levels may also cause blood vessel narrowing and difficulty maintaining blood vessel health.

The company expects to reach an agreement on a pivotal study in pediatric patients with ABCC6 Deficiency by year-end 2024.

Stifel says that, although lead indications are rare, INZ-701 has pipeline-in-a-product potential.

Stifel initiated with a Buy rating with a price target of $16.

“Based on early PK/PD data, INZ-701 has a clearer development path in ENPP1 deficiency with ABCC6 deficiency development right behind; calciphylaxis is earlier in development but presents an attractive life-cycle management (LCM) strategy,” the Stifel analyst wrote.

The analyst said as with many rare diseases, ENPP1 and ABCC6 deficiencies are not widely known among the public or investors. As a result, the analyst anticipated the primary challenge for investors would be the clinical trial and regulatory risks.

Stifel added, “By YE24, interim data from both Phase 1b ENERGY-1 (ENPP1 deficiency; infants) and Phase 1 SEAPORT-1 (calciphylaxis) studies have a chance to instill investor confidence prior to additional catalysts in 2025.”

INZY Price Action: Inozyme Pharma stock is up 8.06% at $5.63 at publication Thursday.

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