Tuesday, H.C. Wainwright initiated coverage on Dyne Therapeutics (NASDAQ:DYN) with a Buy rating and a price target of $36.00. The firm highlighted the potential of Dyne's FORCE platform, which is designed to deliver therapies targeting muscle tissue, a challenging area for anti-sense oligo (ASO) based treatments. The platform's unique features, including a TfR1 targeting Fab and a clinically validated valine-citruline (Val-Cit) linker, are seen as key differentiators in the space.
The FORCE platform allows for greater enrichment of oligos or SiRNA within muscle tissue, minimizing safety concerns. This approach avoids issues associated with monoclonal antibodies, such as receptor saturation and rapid drug clearance. The analyst pointed to interim data from clinical trials ACHIEVE and DELIVER in January 2024, which showed significant improvement in ASO enrichment in muscles.
Dyne's interim data suggests the possibility of achieving more than the 25-30% splicing correction initially predicted. The lowest doses in the ACHIEVE trial, focusing on myotonic dystrophy type 1 (DM1), have already demonstrated impressive splicing correction. The data indicates potential for higher efficacy at increased doses, which could lead to a more consistent and significant impact on myotonia.
In the DELIVER trial for Duchenne muscular dystrophy (DMD), the exon skipping and mean dystrophin expression data have shown promise. There is potential to reach around 5-10% or higher mean dystrophin levels at higher doses, which may provide Dyne with a competitive advantage in the field.
Looking forward to the second half of 2024, the analyst anticipates further readouts from the ACHIEVE and DELIVER trials. These results will be crucial for Dyne to demonstrate consistent safety across cohorts and dose-dependent improvements in splicing or exon skipping activity. Success in these areas could pave the way for an accelerated approval pathway for Dyne's therapies. Therefore, the firm has set a price target of $36.00, reflecting confidence in the company's prospects.
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