Leerink starts coverage of 10 biopharma and generic stocks
Leerink initiated coverage of 10 biopharma and generic stocks, saying the sector is rich with companies developing drugs with the aim to treat and/or definitively cure conditions ranging from rare, severe inherited illnesses to some of the most common diagnoses in the developed world.
Analyst Dr. Mani Foroohar gave “outperform” ratings to six stocks: Bluebird Bio (NASDAQ:BLUE), Dicerna Pharmaceuticals (NASDAQ:DRNA), Eidos Therapeutics (NASDAQ:EIDX), Intellia Therapeutics (NASDAQ:NTLA), Rocket Pharmaceuticals (NASDAQ:RCKT) and Wave Life Sciences (NASDAQ:WVE), with price targets of $145, $24, $32, $23, $22 and $61, respectively.
Dr. Foroohar also started Alnylam Pharmaceuticals (NASDAQ:ALNY), Avrobio (NASDAQ:AVRO) and Ionis Pharmaceuticals (NASDAQ:IONS) with “market perform” ratings and price targets of $63, $27 and $50, respectively; and Regenxbio (NASDAQ:RGNX) at “under perform” with a price target of $42.
“We are bullish on innovation velocity and increasing regulatory clarity in the sector, [and] take a balanced view on pricing dynamics and a selective approach to stock selection,” he added.
During the past year, two companies in Leerink’s coverage - RNA therapy bellwethers, Alnylam and Ionis - transitioned to commercial-stage biotechnology companies.
“With the majority of our coverage companies positioned for likely regulatory approval of independently marketed assets in the next three years, we see commercial execution as increasingly driving returns,” Dr. Foroohar said.