By Bill Alpert

Oruka Therapeutics stock doubled in the last month, as investors appreciated the bicoastal startup's lead in ultralong acting drugs against psoriasis.

At a recent $59.90, the market values Oruka at $3.1 billion. That's decent, for a company whose first product revenue isn't expected until 2030. But Big Pharma has been acquisitive lately, as it seeks to stock its pipeline with developmental drugs aimed at growing market categories.

Psoriasis and other autoimmune disorders are one of those categories. Skyrizi is a $21 billion a year seller for AbbVie, and is growing 30% annually. Despite Skyrizi's popularity, newer psoriasis drugs are also enjoying fast-growing sales, including Johnson & Johnson's Tremfya and Belgium-based UCB's Bimzelx. Along with these injectable drugs, there are pills like Amgen's Otezla.

Based in Menlo Park, Calif., and Waltham, Mass., Oruka has two injectable drugs in clinical trials whose advantages could win sales even though the first of these won't be up for approval by the U.S. Food and Drug Administration until 2030. Both are monoclonal antibodies, like the currently marketed injectables. But the Oruka products could allow less frequent injections and might work together in powerful combination.

The drug that Oruka's code-named ORKA-001 blocks IL-23, one of our immune system's attack dogs that mistakenly goes after a patient's skin, in psoriasis.

Phase 1 studies showed that one shot of ORKA-001 lasted long enough to allow dosing twice-a-year -- or even once-a-year. AbbVie's Skyrizi is injected every three months.

Oruka's ORKA-002 blocks IL-17, another immune attack weapon, that can cause psoriasis in the skin, and cause arthritis-like damage to joints. That's what is blocked by J&J's Tremfya and UCB's Bimzelx. Doctors use them when Skyrizi brings incomplete relief. Like its IL-23 sibling, Oruka's IL-17 drug should allow less-frequent dosing than marketed products.

ORKA-001 will be in two Phase 2 trials this year, with interim results from the first of those in the year's second half. ORKA-002 is starting its Phase 2 trials this year. Later, Oruka will test a combination of its drugs, which the company thinks could become the standard of care for psoriasis.

The company has a good cash position, with $480 million on its balance sheet and expected annual burn rates of about $150 million after this year.

At around $60, the stock has already gotten close to Wall Street's average price target of $72. As noted, sales and profits are several years away.

Guggenheim's Yatin Suneja upped his Oruka price target to $125 this week. He thinks trials will show that ORKA-001 is more effective than Skyrizi, and not just longer acting. And he thinks a combo of Oruka's drugs will be "the best of both worlds."

Write to Bill Alpert at william.alpert@barrons.com

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April 10, 2026 17:28 ET (21:28 GMT)

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