HCW starts Dicerna at buy

H.C. Wainwright initiated coverage of Dicerna Pharmaceuticals (NASDAQ:DRNA) with a “buy” rating and $7 price target. The stock closed at $3.05 on Dec. 12.

Dicerna recently announced its intention to shift development of its RNA interference (RNAi) programs to use its proprietary GalXC delivery platform.

“While this move delays meaningful clinical data until 2018, we believe the data yielded may be more competitive with other RNAi assets in development with more potent, durable efficacy and a subcutaneous delivery without the drawbacks of its previous in-licensed lipid nanoparticle delivery system,” writes analyst Shaunak Deepak.

“We believe what you get for $5-million of enterprise value is a contemporary RNAi technology platform, a management team that has weathered its share of storms, and maybe a few shots at delivering better RNAi drugs to treat unmet medical needs,” he added.