Shares of Aclaris Therapeutics can surge more than 60% on the back of a possible new treatment for immuno-inflammatory diseases, including rheumatoid arthritis, according to Goldman Sachs. Analyst Corinne Jenkins initiated coverage of Aclaris Therapeutics with a buy rating, saying she expects promising results out of clinical trials for the company’s drug called zunsemetinib . “Based on our assessment of the mechanism of action, prior clinical data, and the competitive landscape for key indications, we take a positive view on the clinical outlook for ACRS’ lead drug, zunsemetinib, ahead of proof-of-concept data in rheumatoid arthritis expected in 2023,” Jenkins wrote in a Wednesday note. “We also anticipate initial clinical data from Ph2a studies of zunsemetinib in potential expansion indications (psoriatic arthritis, hidradenitis suppurativa) in 1H23 to begin to prove out the drug’s pipeline-in-a-product potential,” Jenkins added. The biopharma stock has already outperformed this year, up nearly 5% in 2022, while the S & P 500 declined roughly 14%. The analyst expects that there will be further catalysts for positive upside as the Aclaris unveils further data for zunsemetinib in 2023. In fact, her $25 price target implies roughly 64% upside from Wednesday’s closing price. The stock was up 4% on Thursday. To be sure, the company faces stiff competition as there are some treatments on the market similar to zunsemetinib. However, the analyst said the drug’s “oral daily dosing, a clean safety profile, and efficacy in-line with current biologic therapies” are positives for the treatment. “We see this profile as sufficient to garner modest share in these large indications, fostering a sizable peak sales opportunity which we estimate at > $5B across indications,” Jenkins wrote. —CNBC’s Michael Bloom contributed to this report.