Weekly biotech pulse: Sana, aTyr, Theseus to release fresh data

Investing.com -- Here is your weekly Pro Recap preview of key biotech and FDA catalysts to look out for in the next week: Sana Biotech, aTyr Pharma, and Theseus Pharma are set to share new data, and the FDA is set to review a Lexicon Pharma compound.

When this news comes out, InvestingPro users will be getting word of it in real-time. Start your 7-day free trial to see for yourself.

Sana Biotechnology

Make sure to watch Sana Biotechnology (NASDAQ:SANA) this coming Tuesday, as the company is set to share initial clinical data for SC291, the company's drug candidate to treat solid cancer tumors.

The investors appear excited for the readout, as the stock has rocketed over 100% in the past several weeks. SANA currently has 2 Buy ratings, and 3 Hold ratings from various Wall Street analysts.

aTyr Pharma

Here's another name to pay attention to on Tuesday: aTyr Pharma (NASDAQ:LIFE), which is set to share interim data from its ongoing Phase 3 trial of efzofitimod at the American Thoracic Society conference. The company is hoping the compound will prove effective in treating pulmonary sarcoidosis.

The study has been ongoing since September 2022, and shares have lost over 10% through the period, indicating a cautious investor sentiment.

The company currently has 7 Buy ratings, 3 Holds, and 1 Sell from analysts. Here's what Roth/MKM had to say back in March when it resumed coverage on the stock with a Buy rating on expectations that enzofitimod will prove favorable against competing drugs:

We are resuming coverage of aTyr Pharma with a Buy rating and price target of $9/share. Patient enrollment is ongoing in a pivotal, global, Phase 3 trial in pulmonary sarcoidosis for efzofitimod, following clinically meaningful Phase 2 data. In our view, enzofitimod is expected to have a differentiated product profile compared to corticosteroids, immunosuppressants, and immunomodulators with high efficacy and a comparatively better side effect profile. Efzofitimod is also being developed for other interstitial lung diseases.

Theseus Pharmaceuticals

Keep Theseus Pharmaceuticals (NASDAQ:THRX) on your radar on Thursday, when the company is scheduled to present Phase 1/2 data for THE-630, its candidate to treat gastrointestinal stromal tumors (GIST).

With the shares up over 110% YTD, the investors are clearly bullish on the company's prospects.

Analysts currently have 7 Buy ratings, 4 Holds, and 2 Sells on the stock. Most recently, Stifel expressed confidence in the proposed drug:

We believe THRX’s Predictive Resistance Assay (PRA) was validated by Deciphera’s INTRIGUE subgroup data published recently in January 2023, and think that increases the likelihood that THE-630 achieves pan-KIT inhibition. This year, interim (2Q23) and full (4Q23) dose-escalation data should confirm such profile.

Lexicon Pharmaceuticals

The markets may be closed on Saturday, but the grind never stops. Be sure to keep an eye on Lexicon Pharma (NASDAQ:LXRX), as the company has a PDUFA set for May 27 for the Food and Drug Administration to review sotagliflozin, its candidate to treat heart failure.

Investors clearly believe the drug has merit, as the shares have leapt 27% over the past month alone.

Analysts currently rate it at 3 Buys, 7 Holds, and 2 Sells. Jefferies recently said it believes the FDA will likely approve the drug, but that it is less certain about its market opportunity:

In May 2023, we see an 80-85% probability the FDA approves sotagliflozin (oral SGLT1/2) for heart failure, though we are less confident about the commercial launch cadence and overall market opportunity (e.g. our $350M peak sales is below cons $700M). Second asset LX9211 (novel AAK1 inhibitor) could begin Phase III in 2023 for pain, which is a challenging indication.

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