Septerna Poised For Biopharma Breakthrough: Analysts Cite GPCR Innovation And 2025 Milestones

A couple of analysts initiated coverage on Septerna, Inc. SEPN, which debuted on NASDAQ last month.

Cantor analyst Josh Schimmer initiated coverage at an Overweight rating with a price target of $50.

The analyst says that SEPN’s advanced platform accelerates the discovery of novel GPCR-targeting therapeutics, addressing a significant unmet need.

Leveraging CryoEM technology, SEPN reconstitutes GPCRs in lipid bilayers, enabling structural analysis of targets previously deemed “undruggable.” This unlocks potential in a $125 billion market where over 50% of GPCR targets remain untapped, adds the analyst.

Schimmer writes that SEPN’s lead asset, SEP-786, targets hypoparathyroidism (hypoPTH), a severe endocrine disorder affecting approximately 70,000 U.S. patients.

That analyst anticipates Phase 1 single-ascending and multiple-ascending dose data by mid-2025, offering potential advancements in chronic therapy for low parathyroid hormone and serum calcium levels.

This will be a key de-risking milestone, as early hypoparathyroidism trials often predict late-stage success, and it will also validate SEPN’s innovative GPCR-targeting platform, adds the analyst.

Additionally, the analyst assumes a $250 million platform value, reflecting SEPN’s differentiated GPCR capabilities and the potential of its disclosed and undisclosed pipeline programs.

JP Morgan analyst Eric Joseph initiated coverage at an Overweight rating with a price target of $38.

The analyst writes that Septerna is a differentiated player in biopharma, leveraging its Native Complex Platform to enhance the development of GPCR-targeted drugs with greater control over mechanisms of action, pharmacokinetics, and selectivity.

This platform applies state-of-the-art structural biochemistry to efficiently model and design oral compounds, addressing the limitations of traditional trial-and-error methods, adds the analyst.

Joseph says the company’s pipeline strategy targets large, established indications where oral options can provide clear patient benefits.

With a potential derisking catalyst from SEP-786 for hypoparathyroidism in 2025, a cash runway through 2027, and strong business development prospects, Septerna is poised to outperform broader biopharma coverage in the mid term, adds the analyst.

Price Action: SEPN shares are down 1.32% at $23.24 at the last check Tuesday.

Photo via Shutterstock

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