Leerink Partners sets $20 target for Kalaris stock, rates Outperform

Published 07/05/2025, 12:14
Leerink Partners sets $20 target for Kalaris stock, rates Outperform

On Wednesday, Leerink Partners began coverage of Kalaris (NASDAQ:KLRS), currently trading at $4.79 with a market capitalization of $89.6 million, assigning the biotech firm an Outperform rating and setting a price target of $20.00 per share. The coverage initiation by Leerink Partners comes as Kalaris continues to develop its flagship product, TH103, a potential treatment for wet age-related macular degeneration (AMD (NASDAQ:AMD)).

Leerink Partners outlined a three-part investment thesis for Kalaris, highlighting the significant market opportunity in wet AMD, a condition that currently has unmet needs in treatment duration and patient administration burden. According to InvestingPro data, analysts maintain a Strong Buy consensus on the stock, though the company’s overall financial health score is currently rated as weak. TH103, Kalaris’s investigational anti-VEGF therapy, is designed to be structurally similar to the existing treatment Eylea but with modifications intended to increase ocular retention. This could potentially offer longer-lasting efficacy and enhanced visual outcomes for patients.

The research firm’s positive outlook is also based on the potential market space for a longer-acting anti-VEGF therapy. Leerink Partners believes that even if TH103 were to capture only a small percentage of the anti-VEGF injection market share, it could still achieve commercial success.

Wet AMD is a chronic eye disorder that can lead to loss of vision in the central field of view. Current treatments often require frequent injections into the eye, which can be burdensome for patients. The development of TH103 aims to address this challenge by reducing the frequency of treatments needed.

Kalaris’s stock price will likely be influenced by the progress and results of TH103’s clinical trials and regulatory pathways. The stock is currently trading near its 52-week low of $4.49, having declined over 58% in the past six months. InvestingPro analysis suggests the stock is currently fairly valued, with 10+ additional ProTips available to subscribers, including detailed insights on profitability metrics and growth potential. Leerink Partners’ Outperform rating indicates their confidence in the company’s potential to perform well in the market based on the current information available about its product development.

In other recent news, Kalaris Therapeutics has announced a merger with AlloVir, which has been approved by AlloVir’s shareholders. This merger is expected to enhance the development of novel treatments for retinal diseases, with the combined entity continuing under the name Kalaris Therapeutics. Kalaris is actively advancing its lead product candidate, TH103, an anti-VEGF therapy for neovascular Age-related Macular Degeneration and other retinal conditions. In addition, William Blair has initiated coverage on Kalaris Therapeutics with an Outperform rating, reflecting confidence in the company’s market potential for retinal vascular disease treatments. The firm has set a fair value estimate of $21 per share, underscoring the therapeutic solutions’ potential to address unmet needs. Furthermore, Kalaris has appointed Leone Patterson to its Board of Directors, where she will also chair the Audit Committee. Patterson’s extensive experience in biotech finance is expected to contribute significantly to the company’s strategic initiatives. Additionally, Kalaris has restructured executive compensation for its top executives, including the President and CEO Andrew Oxtoby, aligning with potential changes in control of the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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