SYRE Stock Marks Best Session In About 3 Years — Here’s Why

• Spyre is looking forward to developing the drug as a single treatment, as well as in combination with its investigational antibodies SPY002 or SPY003.
• TD Cowen says Spyre Therapeutics' data "strengthened our confidence in an already great dataset" for SPY001.
• Leerink continues to view the trial data as a best-case outcome for SPY00, one which derisks both its potential as a monotherapy and backbone in future combination regimens.

Shares of Spyre Therapeutics Inc. (SYRE) closed up 23% on Monday after several analysts upped their price targets on the stock on the heels of positive ulcerative colitis trial data, with several noting the company’s experimental drug’s potential against Takeda’s Entyvio.

The stock marked its highest single-day gain on Monday since June 2023.

Earlier in the day, Spyre announced positive data from part A of its phase 2 trial of SPY001 in the treatment of moderate-to-severely active ulcerative colitis. The company said that the trial met its primary endpoint of statistically significant reduction in disease activity.

The drug was further well tolerated though six subjects experienced treatment-emergent adverse events, including a serious event which the company deems as not related to the drug.

Spyre is looking forward to developing the drug as a single treatment as well as in combination with its investigational antibodies SPY002 or SPY003.

Analyst Take Away

TD Cowen said Spyre Therapeutics' data "strengthened our confidence in an already great dataset" for SPY001. The firm has a ‘Buy’ rating on Spyre.

Wedbush analyst David Nierengarten, meanwhile, raised the firm's price target on Spyre to $80 from $65 and kept an ‘Outperform’ rating on the shares. Spyre's SPY001 monotherapy surpassed historical benchmarks for Takeda's (TAK) Entyvio with 40% clinical remission and 51% endoscopic improvement, yielding an anticipated upside scenario, the analyst told investors in a research note.

Leerink, which also has an ‘Outperform’ rating on the stock, raised the firm's price target on Spyre Therapeutics to $106 from $49. Leerink continues to view the trial data as a best-case outcome for SPY001, one which derisks both its potential as a monotherapy and backbone in future combination regimens. The target change reflects the firm's increased conviction and higher probability of success for SPY001 opportunities in UC and Crohn's disease, it said.

Overall, the firm believes these "striking initial” study results represent best case data for SPY001, suggesting positively differentiated efficacy vs. Entyvio across a broad range of objective and symptomatic measures. The data position SPY001 as a leading agent in this multi-billion-dollar class, argues Leerink.

Stoked by the data, BTIG analyst Julian Harrison also raised the firm's price target on Spyre to $98 from $70, and kept a ‘Buy’ rating on the shares while raising the firm's view of the odds of success for SPY001 combos in UC to 80% following the results.

How Did Retail Traders React?

On Stocktwits, retail sentiment around SYRE stock jumped from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume jumped from ‘high’ to ‘extremely high’ levels.

SYRE stock has gained nearly 400% over the past 12 months. 

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