Citi initiates Apogee with "buy" rating on potential for eczema drug

Brokerage Citi starts coverage on Apogee Therapeutics APGE.O with "buy" rating

Brokerage sets PT at $95, representing more than double upside to the stock's last close

Brokerage sees peak combined adjusted revenues of $2.2 billion from co's experimental drug candidate APG777 to treat atopic dermatitis (AD) or often called as eczema, a type of skin disease, and asthma

Citi says "capturing a fraction of the Dupixent patient in AD is itself a multi-billion dollar opportunity"

Dupixent is jointly developed by Sanofi SASY.PA and Regeneron REGN.O for patients with AD and asthma

Brokerage believes physicians are unlikely to switch well-managed patients from Dupixent to APG777 unless the latter shows comparable or superior efficacy with similar safety profile

All eight brokerages covering the stock rate it at "buy" or higher, their median PT is $93.5

APGE has fallen 44.4% in the past 12 months