On Thursday, Raymond James resumed coverage on Regenxbio Inc. (NASDAQ:RGNX), issuing an Outperform rating and setting a price target of $18.00. The firm highlighted the biotechnology company's potential for growth, driven by its diverse pipeline of treatments. The analyst pointed out that the market is undervaluing Regenxbio's stock, especially considering the prospects of its RGX-314 therapy for wet age-related macular degeneration (wAMD) and diabetic retinopathy (DR), as well as RGX-121 for Hunter syndrome.
Despite the news that competitor Denali Therapeutics Inc. (NASDAQ:DNLI) is seeking accelerated approval for its own Hunter syndrome treatment, which could potentially make Regenxbio's product the second to market, the analyst believes that investors have not yet recognized the value of Regenxbio's program in this area. Additionally, the approval of Sarepta Therapeutics' (NASDAQ:SRPT) Duchenne muscular dystrophy (DMD) gene therapy in June could pave the way for a similar regulatory path for Regenxbio's RGX-202. This therapy could capture a significant market share, even if limited to the approximately 15% of patients with neutralizing antibodies to Sarepta's Elevidys.
Regenxbio's RGX-202 is seen as a particularly promising commercial opportunity, with the potential to contribute additional revenue beyond current projections. The company's focus on gene therapy treatments for serious diseases positions it in a rapidly evolving segment of the healthcare sector. The new price target of $18.00 reflects the firm's confidence in Regenxbio's ability to capitalize on these opportunities and deliver growth.
In other recent news, REGENXBIO has seen significant developments in its gene therapy programs. The company has reported promising results from its CAMPSIITE trial of RGX-121, a potential gene therapy for Mucopolysaccharidosis Type II (MPS II), also known as Hunter syndrome. This trial showed sustained reductions in a key biomarker of brain disease and a significant number of patients being able to discontinue standard enzyme replacement therapy.
REGENXBIO also reported advancements in other priority programs during its Q2 2024 earnings call, which include gene therapies targeting Duchenne muscular dystrophy (DMD), wet age-related macular degeneration (wet AMD (NASDAQ:AMD)), and diabetic macular edema (DME). The company maintains a solid financial position with $327 million in cash, cash equivalents, and marketable securities.
H.C. Wainwright recently maintained a Buy rating on REGENXBIO, reflecting a positive outlook on the company's prospects following the recent trial results. In a key personnel move, Mitchell Chan has been appointed as the new Executive Vice President and Chief Financial Officer of REGENXBIO.
InvestingPro Insights
Adding to Raymond James' optimistic outlook on Regenxbio Inc. (NASDAQ:RGNX), recent data from InvestingPro provides additional context for investors. Despite the company's current challenges, including a negative gross profit margin of -198.51% in the last twelve months as of Q2 2024, there are signs of potential turnaround. InvestingPro Tips highlight that RGNX holds more cash than debt on its balance sheet, which could provide financial flexibility as it advances its pipeline.
The stock's recent performance has been challenging, with a 50.98% decline over the past six months, placing it near its 52-week low. However, this may present an opportunity for investors aligned with Raymond James' bullish stance. An InvestingPro Tip suggests that the stock's RSI indicates it may be in oversold territory, potentially signaling a buying opportunity for those confident in the company's long-term prospects.
It's worth noting that while Regenxbio is not currently profitable, two analysts have revised their earnings upwards for the upcoming period, which could reflect growing confidence in the company's pipeline developments mentioned in the article. For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide further insights into Regenxbio's financial health and market position.
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