On Monday, BMO (TSX:BMO) Capital Markets revised its outlook on Disc Medicine (NASDAQ:IRON), increasing the price target to $70 from the previous $50, while reiterating an Outperform rating for the company's stock.
The adjustment follows recent updates from the European Hematology Association (EHA) and presentations by Disc Medicine's management, which bolstered the firm's confidence in the company's strategic plan for its drug Bitopertin, aimed at treating erythropoietic protoporphyria (EPP).
The analyst from BMO Capital expressed that the post-hoc analysis of the AURORA study for Bitopertin was persuasive and could potentially lead to a well-structured Phase 3 trial, subject to discussions with the FDA. The perceived success of the analysis led to an increased probability of success (PoS) for Bitopertin in treating EPP and X-linked protoporphyria (XLP) to 70%.
The report also highlighted that the updates regarding Disc Medicine's hepcidin modulation program have not been fully appreciated by the market. The hepcidin program is considered to provide an additional robust investment thesis. The analyst's comments suggest a strong belief in the potential of both the Bitopertin treatment and the hepcidin program, which could be pivotal for the company's future.
This price target revision reflects a positive outlook on Disc Medicine's pipeline, particularly the advancements in its lead candidate, Bitopertin. The firm's maintained Outperform rating indicates their expectation that the stock will perform well relative to the market or its sector in the foreseeable future.
The new price target of $70 per share represents a significant increase from the former target, underscoring the firm's heightened optimism about Disc Medicine's prospects following the recent data presentations and analyses.
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