On Wednesday, Leerink Partners shifted their stance on Ionis Pharmaceuticals (NASDAQ:IONS), elevating the company's stock from Market Perform to Outperform and increasing the price target to $62 from the previous $53.
This adjustment comes as Ionis advances its strategy focusing on wholly-owned assets, with heightened investor attention on olezarsen and donidalorsen, two significant assets nearing the commercialization phase.
The reevaluation of Ionis's potential was influenced by the company's performance relative to its peers. Despite the impressive results seen with Alnylam Pharmaceuticals' HELIOS-B top-line and the Phase 1/2 HALOS data in Angelman syndrome, which led to a 20.6% increase over the past month, Ionis's shares have remained unchanged year-to-date, in contrast to an 11% gain in the broader biotech index (XBI).
Leerink Partners anticipates further upward movements in estimates as the value of Angelman syndrome treatments begins to be factored into financial models. With Ionis's ION582 and competitor Ultragenyx Pharmaceutical (NASDAQ:RARE)'s GTX-102 showing comparable clinical profiles, the firm projects an equal market share for both treatments, forecasting low double-digit percentage peak penetration for each in a significant orphan market.
The new price target of $62 reflects Leerink Partners' confidence in Ionis's growth prospects as it transitions to a focus on wholly-owned assets. The firm's outlook is buoyed by the potential commercial success of the company's key assets, olezarsen and donidalorsen, which are poised to contribute to Ionis's financial performance in the near future.
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