HCW starts GlycoMimetics at buy; PT $24

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H.C. Wainwright launched coverage of GlycoMimetics (NASDAQ:GLYC) with a “buy” rating and $24 price target based on a positive outlook for the company's pipeline. The stock closed at $10.29 on Dec. 17.

GlycoMimetics focuses on development of glycomimetic drugs to address unmet medical needs in diseases where carbohydrate biology plays an important role. The company's pipeline includes lead candidate rivipansel, a pan-selectin inhibitor, which is in Phase 3 development for the treatment of sickle cell disease vaso-occlusive crisis (SCD VOC).

Rivipansel is being developed with Pfizer. GlycoMimetics is also developing its wholly-owned product uproleselan, an E-selectin inhibitor targeting endothelial cells, with the goal of interrupting bone marrow cellular adhesion with leukemic cells.

Analyst Edward White writes that upcoming catalysts in 2019 include initiation of uproleselan’s Phase 2/3 study and Phase 2 NCI/HOVON consortium-funded frontline acute myeloid leukemia trials, anticipated in the first quarter of 2019; top-line rivipansel Phase 3 data in SCD VOC patients expected in the second quarter of 2019; and proof-of-concept uproleselan M-protein data in multiple myeloma patients expected in mid-2019.

“We also anticipate enrollment completion in early 2019 for the rivipansel Phase 3 trial, and believe this could positively impact the stock following Pfizer’s previous extension of enrollment timelines, which had a negative impact on the stock in 2018,” he added.

“We believe the company, with two late-stage products, one of which is licensed to Pfizer, is currently undervalued, and we believe the stock should be bought ahead of the potential catalysts in 2019,” Mr. White said.

Stephen Kilmer