Citigroup says shares of this obesity drug biotech could nearly double
BioAge Labs shares have ample room to run as the biotechnology firm’s obesity treatment is poised to gain traction in the booming weight management solutions market, according to Citigroup. The bank upgraded BioAge to buy from neutral on Wednesday, doubling its 12-month price target on the stock to $10 from $5, implying 89% upside from Tuesday’s close. “Given guidance for multiple [obesity product] and third-party data readouts over the next ~12-15 months, we believe it’s appropriate to upgrade BIOA,” Citi analyst Samantha Semenkow said in a note to clients. “We see the upcoming clinical data from both BioAge and competitors as potential stock moving catalysts.” BioAge is likely to see upside from its novel obesity treatment, BGE-102, a highly potent small-molecule NLRP3 inhibitor, according to Citi. The company began a Phase I study of the treatment last summer. BGE-102 could be prescribed on its own or in combination with an oral GLP-1 drug such as Rybelsus, a feature that could boost its market penetration. “In our assessment, BGE-102 look[s] promising as a potentially differentiated NLRP3 inhibitor that could serve as a combo option with oral GLP1s and/or as a monotherapy,” Semenkow wrote. GLP-1 use has increased significantly over the past few years. In a 2024 poll, one in eight adults reported using GLP-1 drugs, with more than 40% of diabetics aged 18 or older saying they’d used a GLP-1 product, according to non-profit research organization KFF, formerly the Kaiser Family Foundation . Citi’s upgrade is at odds with the consensus on Wall Street. Three analysts have a hold on BioAge shares, while one analyst has rated the stock underperform, LSEG data shows. BioAge’s stock iis ahead 13% on Wednesday, bringing the gain over the past six months to 43%.
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