What happened
Shares of clinical-stage biotech company Vera Therapeutics (VERA 2.48%) were up more than 11% as of 3:30 p.m. on Tuesday, thanks mainly to an upgraded analyst position. The stock is still down more than 18% in 2023.
So what
Vera is a healthcare company that focuses on treatments for serious immunological diseases. On Tuesday, analyst H.C. Wainwright upgraded its position on the stock from $10 to $25. Another reason for the surge may be that the stock reached its lowest point in three months on Monday, when it fell to $14.16 a share and investors looked to buy the stock on the dip.
Vera's lead product candidate is atacicept, a fusion protein. The drug can be self-administered as a weekly subcutaneous injection to block B lymphocyte stimulator (BLyS) and a proliferation-inducing ligand (APRIL), which can lead to an overstimulation of B cells and plasma cells connected with autoimmune disorders. The company is also developing MAU868, a monoclonal antibody designed to neutralize infection with BK virus (BKV), connected with organ transplants.
Atacicept did well in a phase 2b trial to treat Berger's disease, an autoimmune kidney malady where the glomeruli inside your kidneys are damaged and can cause kidney disease. The company said it began a phase 3 trial of the therapy in June and that updated data from the phase 2b trial is expected to be ready before the end of the year.
Now what
As of the second quarter, the company said it had $181 million in cash, enough to fund operations into 2026. With atacicept in late-stage trials, it is possible that as early as next year, Vera could submit a New Drug Application (NDA) for the therapy to the Food and Drug Administration (FDA). The stock is probably best played as a long-term pick for investors who are not risk-averse.
