Shares of Apogee Therapeutics have gained 34% over the past two days as the small biotech looks to take on Regeneron Pharmaceuticals and Sanofi in eczema treatment.
The bonanza on Apogee stock started Wednesday after a conference hosted by TD Cowen looked at the company's experimental treatments for psoriasis and eczema. A physician on the panel expects Apogee's eczema drugs to become key competitors for Dupixent, an injectable drug from Regeneron and Sanofi.
In response, Apogee stock surged 18.9% on Wednesday. The shares continued rallying on Thursday, gaining 12.6% to close at 53.21. The stock reached an intraday high of 53.33 earlier in the session, signaling a 34% gain from Tuesday's close. That followed the announcement of a $300 million underwritten public offering on Wednesday.
The move Thursday pushed Apogee stock into a breakout. Shares topped a buy point at 47.71 out of a cup base, according to MarketSurge.
Apogee's Leading Eczema Drug
Apogee Therapeutics is testing two approaches to eczema. One of the drugs, called APG777, targets the IL-13 cytokine involved in allergic inflammation. Dupixent, one of the market leaders, blocks the IL-13 and IL-4 pathways.
So far, APG777 appears at least as effective as Dupixent, the physician said, according to a report from TD Cowen analysts. But there's a potential Apogee Therapeutics' drug could become even more effective with greater exposure — the amount of drug in the body following administration.
"This is not required to see preferential prescribing in the first-line setting though, as the physician believes that (every three months to every six months) dosing with a (Dupixent)-like profile would become the treatment of choice among patients and physicians," the analysts said.
The physician wasn't concerned about a conjunctivitis event see in testing. Doctors can usually treat conjunctivitis with eye drops. It usually resolves within a week.
"Our (key opinion leader) emphasized that while some investors may be concerned with conjunctivitis, there is a disconnect as physicians do not share this concern," they said.
Improvement Over Dupixent?
In early-stage testing, Apogee Therapeutics is working on a drug that targets IL-13 and OX40L. The latter is a molecule that binds to a receptor on T cells. T cells play a key role in immune regulation.
The doctor believed the combination approach would likely prove superior to Dupixent in a midstage study due to read out in the second half of 2026. The drug just needs to show a 20% to 30% improvement over Dupixent to succeed, the doctor said.
"The physician added that the entire profile will need to be observed including tolerability to understand if (the drug called APG279) will be prescribed to more patients than APG777," the Cowen analysts said. "However, the physician believes that these two therapies will be used in the majority of patients as a first-line biologic."
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