Spyre Therapeutics' stock closed at $93.61, a 13% decline over the week following the company's announcement. Guggenheim reaffirmed a buy recommendation with a $130 price target, and Stifel maintained a buy rating with a $123 target. Wolfe Research downgraded the stock from Outperform to Peerperform, and Mizuho raised its target from $84 to $120 after data from the SKYLINE Part A trial for SPY120.
The company disclosed preliminary results from its Phase II SKYWAY-RA program evaluating SPY072/TL1A in rheumatoid arthritis patients. While the data showed target engagement and statistically significant efficacy improvements over placebo in both TNF‑naive and TNF‑experienced cohorts, the magnitude of effect did not meet Spyre's internal threshold for monotherapy development. Consequently, Spyre is discontinuing the rheumatoid arthritis program. Safety findings were consistent with the known TL1A profile, with no serious drug‑induced adverse events reported.
Spyre indicated that a basket study for psoriatic arthritis and axial spondyloarthritis will assess TL1A's broader potential, and a Phase II combination trial for hidradenitis suppurativa has been launched. The firm’s primary focus remains on its inflammatory bowel disease program, with preliminary monotherapy and combination data for SKYLINE‑UC expected in 2027.
Insider activity disclosed that Fairmount Healthcare Fund II L.P., an entity affiliated with company directors, sold more than 4.6 million shares for approximately $399.7 million, reducing its stake to zero.
InvestingPro analysis flagged the stock as currently overvalued relative to its fair‑value estimate, ranking it among the most overvalued biotechnology equities.
