H.C. Wainwright maintains Korro Bio shares at Buy rating with no change in target price

H.C. Wainwright has maintained a Buy rating on Korro Bio Inc. (NASDAQ: KRRO) with a $100.00 price target.

The firm highlighted a significant collaboration between Korro Bio and Novo Nordisk A/S (NYSE:NVO), which is set to advance two programs.

The first program focuses on an intracellular target for cardiometabolic diseases, a target that was previously inaccessible to Novo Nordisk using their own methods.

The agreement stipulates an upfront payment of $10 million to Korro Bio for the initial candidate, with the possibility of a second target triggering an additional, yet unspecified, milestone payment.

If both targets are pursued, the deal could potentially yield up to $530 million in combined upfront, development, and commercial milestone payments to Korro Bio. Moreover, Korro Bio stands to earn mid-single digit royalties on annual net sales of any licensed products.

H.C. Wainwright emphasized the importance of this partnership as a source of non-dilutive funding for Korro Bio, which could increase with development and commercial success.

In other recent news, Korro has entered into a strategic collaboration with global healthcare company Novo Nordisk to develop genetic medicines for cardiometabolic diseases.

This partnership could potentially garner up to $530 million for Korro Bio. The deal will leverage Korro's proprietary OPERA platform for RNA editing to create treatments for two undisclosed targets.

In board changes, David L. Lucchino has stepped down and Dr. Katharine Knobil has joined as a Class III director. Korro Bio's lead drug candidate, KRRO-110, has made substantial progress, with BMO Capital Markets and Piper Sandler maintaining their respective Outperform and Overweight ratings for the company.

Furthermore, William Blair initiated coverage on Korro Bio, assigning an Outperform rating and setting a fair value of $180 per share.

RBC Capital also maintained its Outperform rating on Korro Bio, albeit with a reduced price target of $95. These recent developments highlight the steady advancement of Korro Bio's innovative approach to RNA editing for genetic disease therapies.

Lastly, Korro Bio announced the appointment of Dr. Kemi Olugemo as Chief Medical Officer, reinforcing the company's commitment to advancing its clinical programs. The company plans to file for regulatory approval for a First-in-Human study of KRRO-110 in the second half of 2024.

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