Canaccord has initiated coverage of Fractyl Health (GUTS, Financial), assigning the company a Buy rating and setting a price target of $12 per share. The firm's analysis highlights Fractyl's innovative approach with its "Smart GLP-1" gene therapy platform, branded as Rejuva, which could offer a novel treatment pathway for type 2 diabetes.
The therapy involves targeted delivery to the pancreas, utilizing GLP-1 expression that is regulated by an insulin promoter. This system ensures that GLP-1 expression is naturally enhanced following food consumption, potentially improving treatment outcomes.
Fractyl's leading candidate, RJVA-001, is poised to begin clinical trials in the first half of 2025, with the initial findings anticipated in 2026. Canaccord's positive outlook is supported by the potential of this platform to address the needs of diabetes patients, marking a significant advancement in gene therapy.
