Asia FX dithers as dollar steadies before Powell speech; yen muted after CPI data
On Tuesday, Goldman Sachs initiated coverage on Avidity Biosciences, listed on NASDAQ:RNA stock, with a Buy rating and set a price target of $59.00.
The investment firm's optimism towards the biotech company stems from the potential of its leading drug candidates, del-brax and del-desiran, which are being developed for facioscapulohumeral muscular dystrophy (FSHD) and myotonic dystrophy type 1 (DM1) respectively.
The analyst from Goldman Sachs highlighted the significant commercial opportunities these drugs represent, with projected peak sales of $2.7 billion for del-brax and $4.0 billion for del-desiran.
The probability of success for del-brax is estimated at 60%, while del-desiran has a slightly higher probability of 75%. The scalable nature of Avidity's antibody oligonucleotide conjugate platform also contributed to the positive outlook.
Clinical data presented thus far for FSHD, DM1, and Duchenne Muscular Dystrophy (DMD) has shown promising results, demonstrating consistent benefits across various early-stage clinical trials. These findings are believed to significantly reduce the risk associated with the development of the company's platform technology and its drug candidates.
Over the next twelve months, the investment firm anticipates further data from the ongoing clinical trials, especially from the 4 mg/kg dose cohort of del-brax in FSHD. The progression of this drug into registrational studies is expected to further confirm its clinical benefits.
Moreover, clarity regarding Avidity Biosciences' strategic priorities and clinical development plans for DMD is also expected, potentially broadening the market opportunity for the company.
Lastly, Goldman Sachs foresees Avidity Biosciences introducing a new therapeutic area within its platform, focusing on rare precision cardiology, with an indication selection disclosure anticipated in the fourth quarter of 2024.
In other recent news, Avidity Biosciences has announced its intention to conduct a $250 million public offering of common stock, with the potential for an additional $37.5 million in shares.
The company plans to use the proceeds to support its clinical programs and advance its research and development. Leerink Partners and TD Cowen will act as joint bookrunning managers for the offering.
In other developments, Avidity Biosciences reported positive preliminary results from a Phase 1/2 clinical trial for delpacibart zotadirsen, a potential treatment for Duchenne muscular dystrophy (DMD). The trial showed significant increases in dystrophin production and exon 44 skipping, along with a substantial reduction in creatine kinase levels.
Financial analysts have shown interest in the company's developments with BofA Securities raising its price target from $40.00 to $45.00 while maintaining a Buy rating on Avidity's stock, and Wells Fargo reaffirming its Overweight rating.
Lastly, the U.S. Food and Drug Administration granted Breakthrough Therapy designation to Avidity's lead investigational drug, delpacibart etedesiran, for the treatment of myotonic dystrophy type 1.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.