Aardvark Therapeutics shares surge on clinical trial update

Aardvark Therapeutics Inc. shares surged on Tuesday after the company reported positive interim results from a Phase 2 clinical trial of its lead candidate, AVTX-002, in patients with eosinophilic esophagitis (EoE).

The biotech firm said the data showed statistically significant improvements in key efficacy endpoints, including reductions in esophageal eosinophil counts and symptom scores, compared to placebo. The interim analysis was conducted on 60 patients, with the full dataset expected later this year.

Aardvark’s stock rose as much as 45% in early trading, extending gains from Monday. The surge follows a broader rally in biotech shares, driven by renewed investor optimism around clinical trial progress and potential regulatory pathways for novel therapies.

Analysts at William Blair maintained an Outperform rating on Aardvark, citing the trial’s encouraging safety profile and the significant unmet medical need in EoE, a chronic immune-mediated disease affecting the esophagus. The firm set a price target of $18, up from $12 previously, reflecting confidence in AVTX-002’s commercial potential.

The company plans to meet with U.S. regulators later this year to discuss a potential Phase 3 trial design, which could accelerate the path to market if approved. Aardvark has not yet disclosed financial guidance but expects to provide updates on trial enrollment and additional data readouts in the coming quarters.

Investors are closely watching the biotech sector amid heightened volatility, with Aardvark’s rally underscoring the sector’s sensitivity to clinical milestones and regulatory developments.