Oruka Therapeutics (ORKA) could further de-risk its lead psoriasis drug candidate, ORKA-001, with H2 data expected to show stronger 28-week efficacy than its earlier results and AbbVie's (ABBV) Skyrizi, UBS Securities said in a Wednesday note.

The firm said psoriasis treatments typically show improving efficacy over time. It expects ORKA-001's PASI100 response rate to increase from about 63% at week 16 to 70% to 80% at week 28.

UBS said initial one-year durability data should provide an early indication of ORKA-001's potential for six-month or annual dosing. The firm expects the update in late Q3 or Q4, giving the company more time to include one-year data from additional patients.

The investment firm also said AbbVie's planned acquisition of Apogee Therapeutics (APGE) validates the underlying YTE platform used by ORKA-001 and eases concerns about the intellectual property landscape.

UBS maintained its buy rating on Oruka and raised its price target to $130 from $100.

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