On Friday, H.C. Wainwright initiated coverage on Avidity Biosciences (NASDAQ:RNA) shares with a Buy rating and a price target of $72.00. According to InvestingPro data, analyst targets range from $51 to $96, with a strong consensus recommendation of 1.3 (Strong Buy). The stock has shown remarkable momentum, delivering a 243% return year-to-date.
The firm's analyst highlighted Avidity's successful establishment and de-risking of its Antibody Oligonucleotide Conjugate (AOC) platform, along with the execution of three clinical programs targeting rare diseases.
The analyst's positive outlook is based on several key points, including the validation of Avidity's myotonic dystrophy program (DM1) through the MARINA and MARINA OLE studies. With a robust current ratio of 17.76 and more cash than debt on its balance sheet, Avidity appears well-positioned to advance its clinical programs.
InvestingPro subscribers can access detailed financial health metrics and 12 additional ProTips for comprehensive analysis. These studies have demonstrated that the drug Del-desiran is safe and shows sustained improvement in key clinical endpoints. Moreover, the Phase 3 HARBOR trial for this program is currently enrolling and is on track.
In the FSHD (FORTITUDE) program, the drug Del-brax has been found to be safe, with the potential for Avidity to pursue an accelerated approval approach. The treatment has shown a significant reduction in DUX-4 related gene expression and improvements in clinical endpoints. This is supported by decreases in a novel DUX4 regulated biomarker and the creatine kinase biomarker, suggesting a slowing down of muscle loss.
For the DMD program, Del-Zota has demonstrated favorable safety and efficacy, with dystrophin expression approaching normal levels. This could satisfy the criteria for accelerated approval for Exon 44 patients, who currently have no approved therapies.
Avidity Biosciences has also expanded its pipeline with two programs in the precision cardiology space, aiming to build the next growth driver. Looking ahead to 2025, updates are expected from the FORTITUDE biomarker cohort and the OLE, along with a regulatory update on the next steps for Del-zota.
The firm's initiation of coverage with a Buy rating reflects confidence in Avidity Biosciences' potential for growth and success in its clinical programs. Currently valued at $3.7 billion, the company has demonstrated strong market performance despite being in development stage. Get access to the full Pro Research Report and detailed valuation metrics with an InvestingPro subscription.
In other recent news, Avidity Biosciences reported third-quarter 2024 revenues of $175.4 million, slightly surpassing the FactSet consensus. The company adjusted its full-year revenue guidance for fiscal year 2024 to a range of $665-685 million. RBC (TSX:RY) Capital Markets initiated coverage on Avidity Biosciences with an Outperform rating, setting a price target of $67.00. Goldman Sachs (NYSE:GS) maintained a Buy rating with a steady price target of $59.00.
Avidity Biosciences also recently expanded its sales force by 150 representatives, aiming to broaden its reach among primary care physicians. The company set a sales target for its treatment for bipolar depression and major depressive disorder, Caplyta, projecting over $5 billion in sales over the next decade.
The U.S. Food and Drug Administration lifted the partial clinical hold on Avidity's drug candidate, del-desiran, allowing the continuation of the Phase 3 HARBOR trial. The company has also announced a $250 million public offering of common stock, managed by Leerink Partners and TD (TSX:TD) Cowen, to support its clinical programs and advance its research and development.
Goldman Sachs and TD Cowen reiterated their Buy rating on Avidity's stock, with projected peak sales of $2.7 billion and $4.0 billion for its drugs del-brax and del-desiran, respectively. These are the recent developments in Avidity Biosciences.
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