Rodman & Renshaw initiated coverage of Biomea Fusion Inc. with a Buy rating and an $8 price target on January 14. The firm identified the clinical-stage company as an overlooked growth stock.
In the third quarter of 2025, Biomea Fusion announced a strategic shift to focus on two primary assets: icovamenib, a menin inhibitor for type 2 diabetes, and BMF-650, an oral GLP-1 receptor agonist for obesity.
During that quarter, the company reported durable 52-week data from its Phase II COVALENT-111 study. Patients with severe insulin-deficient type 2 diabetes who received a 12-week course of icovamenib showed a sustained mean reduction in HbA1c of 1.5% nine months after dosing ended. Patients who had not reached glycemic targets on GLP-1 therapies saw a 1.3% reduction.
The results indicate a legacy effect where benefits continue long after medication is stopped. Icovamenib is an oral small molecule designed to partially inhibit menin, a protein that acts as a brake on pancreatic beta-cell growth.
Biomea Fusion Inc., trading on NASDAQ under BMEA, is a clinical-stage company that discovers and develops oral covalent small molecule drugs to treat patients with metabolic diseases in the United States.