Leerink starts ObsEva at OP

Leerink initiated coverage of ObsEva SA (NASDAQ:OBSV) with an “outperform” rating and a 12-month price target of $21. The stock closed at $13.21 on Feb. 17.

ObsEva is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapeutics for conditions affecting women’s health.

“We expect shares will appreciate significantly upon receipt of Phase 2b top-line data for OBE2109 for treatment of endometriosis, most likely around the second quarter of 2018,” writes analyst Jason Gerberry.

OBSV has exclusive rights, excluding Asia, to OBE2109, an oral GnRH antagonist for treatment of uterine fibroids (UF) and endometriosis (EM), “two indications we collectively forecast gross sales of about $955-million and risk adjusted sales of $620-million estimated in 2028,” he added.

Mr. Gerberry said GnRH is a validated target for treating UF and EM and the markets are both large. There are no effective, well-tolerated oral therapies that can be used chronically to delay surgery.

“While the competitive pipeline of treatments in development for UF/EM is deep, we believe OBE2109 may possess the best-in-class profile,” he said, adding that OBE2109 is patent protected to 2026 (composition), crystal/salt (2031) and pending dosing patents (2037).