Positive Phase II APEX clinical trial of Apogee’s APG777

Shares of US clinical-stage biotech Apogee Therapeutics (Nasdaq: APGE) closed down 17.3% at $39.24 yesterday, despite announcing positive 16-week data from Part A of the Phase II APEX clinical trial of APG777, a potential best-in-class anti-interleukin (IL)-13 antibody, in patients with moderate-to-severe atopic dermatitis (AD).

Some investors expressed concerns about higher conjunctivitis rates of approximately 18%, compared to those seen with competing treatments Sanofi’s (Euronext: SAN) Dupixent (dupilumab) – 9%-10% in Phase IIb; ~20% in real-world evidence) and Eli Lilly’s (NYSE: LLY) Ebglyss (lebrikizumab-lbkz) - approximately 10% in Phase II; ~14% in real-world

Citi forecasts combined APG777 sales to reach $2.5 billion by 2032, slightly below the consensus estimate of $2.6 billion, saying that it sees the “Phase IIa data for APG777 in atopic dermatitis (AD) as a major de-risking event for the evidence for the program.”