Oruka’s Psoriasis Treatment Could Generate $7B In Peak Sales, Says Guggenheim – ORKA Stock Heads For Best Day In Over 4 Months

• 86% achieved PASI 90, showing a 90% improvement in disease severity.
• Oruka expects to report longer-term trial results in December and begin Phase 3 trials in the first half of 2027.
• Guggenheim reiterated a ‘Buy’ rating and a $200 price target on ORKA.

Oruka Therapeutics (ORKA) was on investors’ radar on Monday after positive trial results for its experimental psoriasis treatment prompted Guggenheim to reaffirm its bullish outlook on the company.

ORKA shares were up over 13% at the time of writing, having breached their 50-day moving average (50-DMA) for the first time in more than a month. The stock is also on track to clock its best day since June.

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61% Of Patients See Symptoms Clear After Week 16

Oruka said its Phase 2b Everlast-B trial, involving 187 patients with moderate-to-severe plaque psoriasis, showed favorable results after week 16.

About 61% of patients receiving the highest dose of 600 mg achieved PASI 100, meaning their symptoms had completely cleared, compared with none of those receiving placebo. Meanwhile, 86% achieved PASI 90, indicating at least a 90% improvement in disease severity.

The treatment was generally well tolerated, with treatment-emergent adverse events reported in 39% of high-dose patients versus 43% receiving placebo. Upper respiratory tract infection and headache were the common adverse events.

 “The data shared today support our next step: engaging with regulatory agencies as we advance ORKA-001 towards Phase 3 trials, which we plan to initiate in the first half of next year,” said Joana Goncalves, Chief Medical Officer of Oruka.

Guggenheim Sees Advantage Over Abbvie’s Skyrizi

Guggenheim sees approximately $7 billion in peak global sales for ORKA-001, according to Investing.com. The firm added that ORKA-001’s results showed a 15- to 20-percentage-point improvement in PASI 100 compared with AbbVie’s (ABBV) approved psoriasis drug, Skyrizi.

The firm reiterated a ‘Buy’ rating and a $200 price target. This represents a more than 120% upside from current levels. All 13 analysts covering the stock have a ‘Buy’ or ‘Strong Buy’ rating, according to Koyfin.

What’s Next For Oruka?

The company expects to report longer-term trial results in December and plans to begin Phase 3 trials in the first half of 2027.

Beyond ORKA-001, Oruka is developing ORKA-002 for psoriasis and hidradenitis suppurativa, a painful inflammatory skin condition. Phase 2 psoriasis results are expected in the first quarter (Q1) of 2027.

Oruka reported about $1.1 billion in cash, cash equivalents, and marketable securities as of June 30 and expects its existing funds to support operations for ORKA-001 and ORKA-002.

Retail Turns Bullish On ORKA

Retail sentiment surrounding ORKA on Stocktwits turned ‘bullish’ from ‘neutral’ over the past 24 hours, amid ‘high’ message volumes.

One Stocktwits user applauded the data.

ORKA shares have been on a strong run this year, rallying more than 220%.

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