SVB Leerink transfers coverage of Alder BioPharma at OP; PT $21

Alder

Analyst Marc Goodman of SVB Leerink has assumed coverage of Alder BioPharmaceuticals (NASDAQ:ALDR) with an “outperform” rating and $21 price target. The stock closed at $11.06 on May 24.

Alder is focused on transforming the migraine treatment paradigm through the discovery, development and commercialization of novel therapeutic antibodies.

“We think the migraine space will be a fast-growing and sizeable market, given that so many players have just entered or are about to enter over the next few years,” Mr. Goodman writes.

Alder’s lead drug candidate, eptinezumab, has the potential to be differentiated from other calcitonin gene-related peptides with its IV formulation, in-office administration, and potential dual-therapy capability in acute and preventive indications, he added.

“Alder’s advantage as a late entrant is that its competitors will have established this market with aggressive marketing, and thus Alder won’t have to spend as much, resulting in strong operating margins that are typical of a specialist market,” Mr. Goodman said.

“We believe that pipeline asset, ALD1910, a new mechanism of action product being developed for migraine, represents upside to our valuation, and the economics of partnering eptinezumab in Europe remains under-appreciated,” he added.

Stephen Kilmer