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Omicron emergence provides case study for ADG20 utility, says Stifel
Stifel analyst Stephen Willey believes the emergence of the Omicron variant reflects his Adagio Therapeutics investment thesis playing out in real time, namely that vaccines alone are unlikely to sufficiently address the COVID-19 pandemic and any transition to endemicity will likely be characterized by reservoirs of infectivity amongst susceptible populations influenced in size/severity by a fluctuating wave of variants. The analyst is "unsurprised" that none of greater than 30 spike protein mutations characterizing Omicron would, per Adagio management, suggest escape from ADG20 neutralization in vitro - particularly given previously published preclinical data describing the highly-conserved nature of the spike protein epitope to which ADG20 binds. While there are obviously many Omicron-related questions requiring answers over the coming days/weeks, Willey believes ADG20's neutralization breadth/potency, long duration of protection, and logistically friendly administration profile would represent an attractive option for combating these continued waves of variant-related uncertainty. He has a Buy rating on the stock.