Upstream Bio, Inc.: Initiation of Research Coverage

William Blair initiated research coverage of Upstream Bio, Inc. (UPB $24.76), which is developing the differentiated TSLP receptor antibody verekitug for multiple inflammatory pulmonary diseases, including asthma and COPD.

Analyst Matt Phipps, Ph.D., estimates that the company could receive initial approval in asthma and chronic rhinosinusitis with nasal polyps (CRSwNP) in 2031, followed by approval in COPD in 2033.

"Verekitug has the potential to deliver differentiated efficacy and longer dosing intervals than currently approved biologics for the treatment of asthma," Dr. Phipps said, "most notably the TSLP antibody Tezspire, which targets the ligand. Upstream Bio is currently conducting two Phase II trials with verekitug, in asthma and in CRSwNP, with plans to initiate a Phase II trial in COPD patients in 2025. We believe demonstrating clinical efficacy at least on par with Tezspire with dosing every three or six months will support a blockbuster opportunity for the therapy given patient preferences for reduced dosing frequency-and preclinical analysis and early clinical data with verekitug already suggest potential for greater efficacy than Tezspire."

Dr. Phipps continued, "Targeting the TSLP pathway has demonstrated clinical benefit in a broader range of severe asthma patients, most notably the just under half of patients who do not have elevated type 2 inflammatory biomarkers. Initial Phase II results with Tezspire in COPD suggest potential for broader activity than IL-4Rα or IL-5 targeting antibodies in this indication as well. Thus, we believe clinical success with verekitug has the potential to continue to expand the commercial market for biologics in these indications, which remain highly underpenetrated."

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