On Tuesday, Goldman Sachs initiated coverage on Mineralys Therapeutics, Inc. (NASDAQ:MLYS) shares, assigning a Buy rating with a price target of $30.00. The investment firm's coverage comes as Mineralys advances its lead asset, lorundrostat, a selective aldosterone synthase inhibitor, through clinical development for the treatment of hypertension, specifically in the third and fourth line (3/4L) settings.
Lorundrostat is being developed as a potential treatment for resistant hypertension, a condition not adequately managed by the current standard of care, spironolactone, due to its side effects like gynecomastia and hyperkalemia.
According to the analysis, Phase 2 trials of lorundrostat have demonstrated a significant reduction in systolic blood pressure (SBP), with an approximate 10 mmHg decrease compared to placebo. Notably, patients with obesity experienced an even greater reduction, around 17 mmHg.
Goldman Sachs' positive outlook is based on the potential of lorundrostat to become a best-in-class therapy within the large market for obesity-related hypertension. The firm estimates that within the United States, there are 7-8 million patients who could benefit from this targeted treatment approach.
Financial projections by Goldman suggest that lorundrostat could achieve approximately $2.8 billion in worldwide non-risk-adjusted peak sales or about $1.1 billion in risk-adjusted peak sales by the year 2040.
The Buy rating reflects Goldman Sachs' confidence in Mineralys's ability to capture a significant share of the hypertension market, particularly among patients with obesity, with lorundrostat's promising efficacy profile.
InvestingPro Insights
As Mineralys Therapeutics, Inc. (NASDAQ:MLYS) captures the attention of investors with its clinical advancements and promising prospects in treating resistant hypertension, real-time data and insights from InvestingPro provide a deeper look into the company's financial health and stock performance. With a market capitalization of $646.69 million and a notably high 3-month price total return of 50.12%, Mineralys shows a significant recent uptick in investor interest. However, the company's challenges are reflected in its negative P/E ratio, currently standing at -6.50, and an adjusted P/E ratio for the last twelve months at -8.99, signaling that profitability remains elusive.
InvestingPro Tips highlight that Mineralys holds more cash than debt on its balance sheet, which could provide financial flexibility as it continues to develop its lead asset, lorundrostat. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a stable short-term financial position. On the flip side, analysts do not anticipate the company will be profitable this year, and Mineralys does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
For those looking to dive deeper into Mineralys Therapeutics' potential, InvestingPro offers additional strategic insights. Currently, there are 8 more InvestingPro Tips available, which can further inform investment decisions. To access these tips and a wealth of other financial data, interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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