Spyre gains after Merck's drug succeeds in skin disease trial

** Shares of Spyre Therapeutics SYRE.O rise 6.08% to $89.87

** Merck's MRK.N experimental drug tulisokibart significantly reduces inflammatory skin lesions in patients with a chronic skin disease called hidradenitis suppurativa

** The data validates the TL1A drug class and supports Spyre's experimental candidates targeting the same pathway, analysts say

** Spyre is studying SPY072 plus bimekizumab, which is sold as Bimzelx, in HS patients, with proof-of-concept data expected in late 2027/early 2028

** We view these results as highly supportive of the rationale behind the combination study, reinforcing the potential for dual TL1A/IL-17 blockade to achieve differentiated efficacy in a complex, multi-pathway disease, says TD Cowen

** Brokerage adds the dataset may also support an attractive opportunity as a standalone treatment, citing its roughly 10-fold greater potency and threefold longer half-life compared with tulisokibart

** SYRE stock up 175% YTD