Leerink resumes coverage of ObsEva at OP; PT $25

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Leerink resumed coverage of ObsEva SA (NASDAQ:OBSV) with an “outperform” rating and $25 price target. The stock finished at $13 on August 14.

“We believe that at current levels the stock does not fully reflect the commercial potential of its lead product, linzagolix (endometriosis, uterine fibroids), which we believe can reach more than $1-billion in peak sales; its additional women’s health pipeline; and its more than $100-million cash balance, which can fund operations into the first half of 2020, by which time we expect to get a positive uterine fibroids Phase 3 data readout for linzagolix,” writes analyst Ami Fadia. 

ObsEva has additional pipeline assets targeting the women's health space, including nolasiban (Phase 3, in vitro fertilization), and OBE022 (Phase 2a, preterm birth), “which could drive upside to our and the Street’s estimates,” she added. 

Ms. Fadia said several upcoming catalysts could drive momentum in ObsEva, including regulatory clarity for nolasiban in the third quarter of 2018; nolasiban's Phase 3 live birth rate data in the fourth quarter of 2018; linzagolix's Phase 2b safety data in endometriosis in the fourth quarter of 2018; and Orilissa's launch ramp during the second half of 2018. 

Melane LaBelle Sampson