Citi maintains Prime Medicine stock with $10 target

Published 19/05/2025, 16:16
Citi maintains Prime Medicine stock with $10 target

On Monday, Citi reiterated its Buy rating on Prime Medicine (NASDAQ:PRME) with a steady price target of $10.00, falling within the broader analyst range of $6-$18. According to InvestingPro data, the stock currently trades at $1.33, with a market capitalization of approximately $203 million. The firm’s analyst, Samantha Semenkow, provided insights into the company’s recent leadership changes and strategic business adjustments. Prime Medicine announced that Allan Reine, the current CFO, will step into the role of CEO, following Keith Gottesdiener’s departure. Jeff Marrazzo, the founder of Spark Therapeutics, will assume the position of Executive Chair of the Board of Directors. Meanwhile, Dr. Gottesdiener will continue to offer his expertise to the company as a consultant for the next 12 months. InvestingPro analysis indicates the company maintains a healthy current ratio of 4.78, though its overall financial health score remains in the weak category.

As part of these management transitions, Prime Medicine has announced a strategic refocus on its most promising in vivo programs, specifically targeting liver diseases such as Wilson’s disease and Alpha-1 Antitrypsin Deficiency (AATD), along with its Cystic Fibrosis (CF) franchise. Consequently, the company has decided to deprioritize the development of its ex vivo Chronic Granulomatous Disease (CGD) program. This shift is expected to extend Prime’s financial runway into the first half of 2026.

Prime Medicine has reaffirmed its projected timelines for initiating first-in-human trials for its Wilson’s disease and AATD programs in 2026, with the anticipation of initial clinical data to be available in 2027. Semenkow notes that while prime editing technology is viewed as highly versatile and a leader in the gene editing field, the company’s cash balance remains a critical factor in reaching significant value milestones before the expected clinical data in 2027. For deeper insights into Prime Medicine’s financial health and valuation metrics, including exclusive ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Prime Medicine has announced a strategic refocus on liver disease programs, particularly targeting Wilson’s Disease and Alpha-1 Antitrypsin Deficiency (AATD), with plans to file regulatory applications by 2026 and anticipate clinical data in 2027. Concurrently, the company is undergoing leadership changes, with Allan Reine, M.D., taking over as CEO and a workforce reduction of about 25% to manage operating expenses. Prime Medicine is also advancing its preclinical gene editing therapy for AATD, utilizing a lipid nanoparticle delivery system to correct genetic mutations linked to the condition. Chardan Capital Markets has adjusted its price target for Prime Medicine to $16 while maintaining a Buy rating, citing progress in the AATD program as a key factor. H.C. Wainwright and JMP Securities have both reaffirmed their Buy and Market Outperform ratings, respectively, with a $10 target, highlighting the transformative potential of Prime Medicine’s gene editing technology for AATD. Additionally, Prime Medicine is engaged in arbitration with Beam Therapeutics over rights related to its AATD program. The company has also deprioritized its Chronic Granulomatous Disease programs, seeking external partnerships for further development. These developments reflect Prime Medicine’s focus on leveraging its Prime Editing platform to address significant unmet medical needs in genetic disorders.

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