Roth starts Genfit at buy; PT €116


Roth Capital Partners launched coverage of Genfit (PSE:GNFT) with a “buy” rating and 12-month price target of €116. The stock closed at €22.09 on Dec. 20.

“A spearhead in NASH drug development, Paris-based Genfit is well-positioned to potentially obtain the first regulatory approval in this space, while being bolstered by its development of a NASH diagnostic kit in primary biliary cirrhosis patients,” writes analyst Yasmeen Rahimi.

She said Genfit’s lead molecule, elafibranor, is a dual agonist of two nuclear receptors that are responsible for regulating an array of metabolic pathways, inflammation and fibrosis.

Given the fundamental role of their NASH pathophysiology, “we believe elafibranor’s mechanism of action (MOA) can deliver an efficient, multifaceted treatment approach by tackling multiple pathways,” she said, adding that its MOA strongly positions elafibranor for stand-alone therapy.

Genfit currently is enrolling patients in its Phase 3 RESOLVE-IT trial, with interim results expected in the third quarter of 2019. Elafibranor also boasts a clean safety profile within a comprehensive database, yielding the way for approval in 2021.