RBC Capital raises MeiraGTx stock price target to $13.00

On Monday, RBC Capital Markets adjusted its financial outlook for MeiraGTx Holdings plc (NASDAQ:MGTX), increasing the price target to $13.00, up from the previous $11.00, while maintaining an Outperform rating on the stock. The company’s stock, currently trading at $7.91, has shown remarkable momentum with an 82% gain over the past six months. According to InvestingPro data, analyst targets range from $11 to $38, suggesting significant upside potential. Analyst Lisa Walter at RBC Capital provided insights into the company’s recent advancements and strategic partnerships.

MeiraGTx, a gene therapy company with a market capitalization of $620 million, has expressed satisfaction with the terms of its Parkinson’s disease (PD) deal with the private AI company Hologen. The collaboration led to the creation of a joint venture that holds potential for future monetization. While InvestingPro analysis indicates the company is currently burning through cash, its impressive revenue growth of 137% year-over-year demonstrates strong commercial progress. The company’s pipeline continues to show progress across various programs.

Earlier this year, MeiraGTx shared comprehensive data from a study involving 11 pediatric patients affected by Leber congenital amaurosis type 4 (LCA4). Based on these findings, the company plans to submit a Marketing Authorization Application (MAA) to UK regulators without needing additional studies. Discussions are ongoing with the U.S. Food and Drug Administration (FDA) to determine a path forward in the United States, where the program has received a Rare Pediatric Disease Designation (RPDD), potentially qualifying it for a Priority Review Voucher (PRV).

The company’s collaboration with JNJ on X-linked retinitis pigmentosa (XLRP) is progressing, with a pivotal study result expected in 2025. MeiraGTx could receive up to $285 million in milestone payments as part of this partnership. Additionally, the pivotal study for a treatment for xerostomia, or dry mouth, is continuing to recruit participants, staying on course for a possible Biologics License Application (BLA) filing in 2026. Furthermore, the first-in-human (FIH) study for their riboswitch platform is scheduled to commence within the year.

In summary, RBC Capital’s Lisa Walter highlighted MeiraGTx’s promising pipeline, which spans treatments for eye conditions, salivary gland issues, and central nervous system disorders. The increased price target from $11 to $13 reflects the company’s recent partnership and ongoing clinical proof of concept in these areas. While currently unprofitable, InvestingPro analysts predict profitability this year, with 8 additional exclusive ProTips available to subscribers. For deeper insights into MeiraGTx’s financial health and growth prospects, access the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.

In other recent news, MeiraGTx Holdings has announced a strategic collaboration with Hologen AI, securing a $200 million upfront payment and forming a joint venture named Hologen Neuro AI Ltd. This collaboration aims to accelerate the Phase 3 development of AAV-GAD for Parkinson’s disease, with Hologen committing an additional $230 million to support the program and other early-stage clinical initiatives. MeiraGTx will maintain a 30% ownership stake in the joint venture and lead clinical development and manufacturing activities. The company’s AAV-GAD program has shown promise in previous studies, demonstrating significant improvements in clinical measures for Parkinson’s disease. Piper Sandler has maintained its Overweight rating on MeiraGTx, citing several upcoming catalysts, including pivotal data for AAV-hAQP1 and potential commercialization efforts that could impact the company’s value. The transaction with Hologen is subject to customary closing conditions and is expected to conclude in the second quarter of 2025. This collaboration marks a significant step for MeiraGTx in advancing genetic medicines for central nervous system disorders.

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