On Wednesday, RBC (TSX:RY) Capital initiated coverage on Fulcrum Therapeutics (NASDAQ:FULC) with a rating of Outperform and a price target of $14.00. The firm views Fulcrum as a rejuvenation story with two promising treatments in its pipeline for rare genetic diseases.
The first key drug in Fulcrum's pipeline is losmapimod, an oral small molecule p38α/β dual inhibitor, which is being developed as a potential therapy for facioscapulohumeral muscular dystrophy (FSHD). RBC Capital sees losmapimod as a significant contributor to Fulcrum's value, with a projected $900 million in worldwide sales by 2030. The anticipation of top-line data for this drug, expected in the fourth quarter of 2024, is a major factor in the firm's positive outlook.
The second asset that adds to Fulcrum's potential is pociredir, an early-stage treatment for sickle cell disease (SCD). Pociredir acts as a fetal hemoglobin inducer and has shown early clinical activity. The progress following the lift of the clinical hold in 2023 is seen as another driver for the company's valuation.
RBC Capital's valuation of Fulcrum incorporates a 45% probability of success (PoS) for losmapimod, which accounts for two-thirds of the firm's price target rationale.
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