Selected stock price target news of the day - June 13, 2023

By Matthew Otto

Chinook Therapeutics’ Zigakibart Shows Promising Phase 1/2 Trial Results in IgA Nephropathy Patients, gets purchased by Novartis

Swiss multinational pharmaceutical company Novartis has announced an agreement to acquire Chinook Therapeutics. The clinical-stage biopharmaceutical company will be aquired for $3.2 billion upfront. The deal bolsters Novartis’s innovative medicines strategy and expands its renal disease pipeline with the inclusion of Chinook’s late-stage assets for treating IgA nephropathy, a rare and severe chronic kidney disease. The agreement, approved by the boards of both Novartis and Chinook, is expected to close in H2 2023, contingent on customary closing conditions.

Chinook Therapeutics also released an update involving Zigakibart (BION-1301), a drug currently in phase 2 clinical trials for the treatment of IgA Nephropathy (IgAN), a kidney disease that can lead to end-stage kidney failure.

Highlights from the release include:

The ongoing phase 1/2 study of Zigakibart has shown promising results. In patients with IgAN, it demonstrated reductions in IgA and Gd-IgA1 levels, significant biomarkers in IgAN, which led to clinically meaningful proteinuria (excessive protein in the urine) reductions. The drug has been well-tolerated with no significant adverse effects or discontinuation of treatment due to adverse events.
The drug demonstrated mean proteinuria reductions of 20% at 12 weeks, 39% at 24 weeks, 67% at 52 weeks, and sustained reduction up to 72% at 100 weeks of treatment.
Updated interim results of the Zigakibart phase 1/2 trial will be presented at the 60th European Renal Association (ERA) Congress.
Other presentations at the Congress will include data from phase 2 ASSIST and phase 3 BEYOND study designs, initial data from the phase 1 study of CHK-336 in healthy volunteers, and research on the impact of maladaptive tubular epithelial cells on chronic kidney disease progression.
The investor conference call and webcast that was scheduled for June 16, 2023, has been canceled due to the pending acquisition of Chinook by Novartis AG.

Wall Street analysts adjust

Stifel analyst Alex Thompson downgrades from Buy to Hold and reduces price target from $43 to $41.
SVB Leerink analyst Joseph Schwartz shifts from Outperform to Market Perform, trims price target from $44 to $40.
HC Wainwright analyst Ed Arce alters Chinook Therapeutics from Buy to Neutral, sets $40 price target.
SVB MoffettNathanson downgrades to Market Perform.
William Blair analyst Tim Lugo demotes to Market Perform.

Analyst Justin Kim (OPPENHEIMER) has currently the highest performing score on KDNY with 3/3 (100%) price target fulfillment ratio. His price targets carry on average an $10.21 (49.98%) potential upside and are fulfilled within an average of 333 days.

Rexford Industrial Realty Faces Analyst Downgrades Despite Strong Q2 Leasing Activity

Rexford Industrial Realty has announced its leasing activity for Q2 2023. The company has executed 1.5 million square feet of new and renewal leases, with rental rates on these leases increasing by 94% on a net effective basis and 73% on a cash basis.

This signifies an acceleration compared to Q1 2023 and the full year 2022. Additionally, the company leased up 375,000 square feet of repositioning and redevelopment projects, achieving an average unlevered stabilized yield of 6.7%.

Wall Street Analysts adjust Lower

Wells Fargo analyst Blaine Heck maintains an Overweight rating but has lowered the price target from $71 to $66.
Citigroup analyst Emmanuel Korchman downgrades from Buy to Neutral, and lowers the price target from $66 to $53.
BMO Capital’s John Kim has also downgraded Rexford Industrial Realty from Outperform to Market Perform, lowering the price target from $69 to $56.

Analyst Blaine Heck (WELLS FARGO) has currently the highest performing score on REXR with 6/10 (60%) price target fulfillment ratio. His price targets carry on average an $8.53 (14.00%) potential upside. The analyst price targetsare fulfilled within an average of 68 days.