Alumis Stock More Than Doubles on Positive Psoriasis Drug Trial Results
The biotech's oral drug, envudeucitinib, demonstrated high rates of skin clearance in Phase 3 studies, positioning it as a potential best-in-class competitor to established treatments.
Shares of Alumis Inc. (ALMS) more than doubled in Tuesday trading after the clinical-stage biopharmaceutical company announced positive top-line results from its pivotal Phase 3 trials for its lead drug candidate, envudeucitinib (ESK-001), for the treatment of moderate-to-severe plaque psoriasis.
The stock surged by as much as 106%, hitting a new 52-week high of $17.11 and pushing the company’s market capitalization towards the $1 billion mark. The dramatic repricing reflects investor optimism that Alumis may have a highly competitive oral treatment for a widespread autoimmune disease.
Alumis reported that its oral TYK2 inhibitor met all primary and secondary endpoints in the VIVID-1 and VIVID-2 late-stage trials. According to the company's official announcement, the drug demonstrated high rates of skin clearance with a favorable safety profile.
Specifically, at week 24, approximately 65% of patients taking envudeucitinib achieved PASI 90, a measure indicating at least a 90% reduction in the Psoriasis Area and Severity Index. Furthermore, around 40% of patients achieved PASI 100, signifying complete skin clearance. These results are considered highly impressive for an oral therapy and suggest the drug could be a market leader.
The successful trial data positions envudeucitinib as a direct challenger to Bristol Myers Squibb's Sotyktu (deucravacitinib), another oral TYK2 inhibitor that was approved in 2022 and has seen strong initial market uptake. The high efficacy data reported by Alumis could give its drug an edge in a competitive market, as reported by STAT News.
"The VIVID-1 and VIVID-2 results are a significant milestone for Alumis and a potential breakthrough for patients suffering from psoriasis," said a company spokesperson in their press release. The company plans to submit the data to regulatory authorities, including the U.S. Food and Drug Administration (FDA), for marketing approval.
Psoriasis is a chronic autoimmune condition affecting millions of people worldwide, and the market for effective treatments is substantial. While injectable biologic drugs have long dominated the space for moderate-to-severe cases, there is strong patient and physician demand for convenient, effective, and safe oral alternatives.
Wall Street had been optimistic about Alumis's prospects even before the data release. According to market data, the stock has eight analyst ratings, comprising seven 'Buys' and one 'Strong Buy', with a consensus price target of $19.86. The strong Phase 3 results are likely to lead to upward revisions of these targets.
The South San Francisco-based company now appears poised to transition from a development-stage entity to a commercial-stage one. The success of envudeucitinib not only validates its scientific platform centered on TYK2 inhibition but also provides a clear path toward generating revenue. Alumis is also exploring the drug's potential in other autoimmune conditions, which could further expand its market opportunity.