BeOne Medicines' (ONC) BTK degrader tacabrutideg presents a "sizable opportunity" in chronic spontaneous urticaria or CSU, RBC Capital Markets said in a Tuesday note.

CSU is an inflammatory skin condition that can be a major market with peak sales estimates of about $3 billion, the brokerage said. BTK degraders have the potential to top BTK inhibitors in CSU, likely exceeding inhibitors in terms of potency and effect durability, RBC noted.

Nurix Therapeutics (NRIX) has reported that its BTK degrader bexobrutideg demonstrated greater potency in CSU compared with Novartis' (NVS) BTK inhibitor remibrutinib, and RBC sees tacabrutideg's overall efficacy profile as "broadly comparable" with bexobrutideg, according to the note.

BeOne Medicines is planning to advance tacabrutideg to phase 2 studies in CSU, RBC noted.

RBC has an outperform rating and $450 price target on BeOne Medicines.

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