AH.C. Wainwright says Fractyl Health's January announcement of the six-month randomized data from the REMAIN-1 midpoint cohort evaluating Revita duodenal mucosal resurfacing maintenance after GLP-1 drug discontinuation triggered a 65% selloff in the shares. Investors focused on "critical friction points, including lack of statistical significance and weight-regain kinetics," the analyst tells investors in a research note. H.C. Wainwright, however, interpreted the results as consistent with the overall Revita trajectory observed in the pilot REVEAL-1 open-label extension cohort and earlier REMAIN-1 midpoint readouts. The firm has positive expectations for the REMAIN-1 pivotal readout anticipated in Q4. The readout could position Revita as a one-time procedural backbone for patients who discontinue GLP-1 therapy, Wainwright contends. It tells investors to "take a breath," saying Revita's data warrant a closer look. The firm has a Buy rating on Fractyl with an $8 price target.
