Odyssey Therapeutics Inc (ODTX): Promising New Oral Approach in IBD; Catalyst in 2H27 - Initiate at Buy

UBS initiates coverage of Odyssey Therapeutics (ODTX) with a Buy rating and $27 PT. We view OD-001, a novel oral RIPK2 inhibitor, as a promising new therapy for inflammatory bowel disease (IBD), a market we estimate could reach $40-50B in 2035. In a single-arm Phase 2a study in ulcerative colitis (UC), OD-001 achieved a 27% clinical remission (CR), which we view as a respectable efficacy signal, with similar activity in advanced-therapy (AT) naive and experienced patients and a favorable safety profile. As IBD moves toward combination therapy, we believe OD-001's greatest commercial opportunity lies as an add-on to established treatments. The upcoming Ph 2a readout with Takeda's Entyvio (vedo) in 2H27 is therefore a key catalyst, and we think it has a credible shot at achieving ~40% CR. Beyond OD-001, ODTX has additional shots on goal through a promising pre-clinical pipeline, including TNFR2, SLC15A4, and IL-33/TSLP programs that are not reflected in our model, and will start to enter