Regenxbio (NASDAQ:RGNX) Inc has one of the most-broad based approaches to adeno-associated virus (AAV)-based gene therapy (GT), utilizing their intellectual property (IP) to develop proprietary in-house programs, partner with large pharma for larger, late-stage indications and outlicensing their technology for economic interest in a number of other programs, Baird Equity Research analysts wrote in a note published on Friday.
The analysts initiated coverage of clinical-stage biotechnology company with an ‘Outperform’ rating and a $42 per share price target, given what they call Regenxbio (NASDAQ:RGNX)’s “down to earth” valuation and multiple ways to win over the next year as AAV sees a resurgence.
“We see Regenxbio (NASDAQ:RGNX) as one of the leaders in the AAV GT space in terms of IP estate, platform capability, partnered and proprietary programs,” the analysts said.
They believe AAV-based gene therapy has had a lot of kinks to work out and getting programs across the finish line to be commercially successful has been a “slog,” but the analysts think progress in the field has gone unrewarded as issues with earlier generations of products have been improved upon and the value proposition of a simple gene replacement strategy for numerous diseases remains a compelling investment thesis.
There are few companies out there with the diversity of options for value creation leveraged to AAV therapy, the analyst argue, but see REGENXBIO is one of the clear leaders in the space with a late-stage opportunity in the retinal space partnered with global pharma leader, AbbVie, and a host of proprietary programs that can move quickly to regulatory review.
“Overall, we think REGENX is a company with multiple opportunities to become a gene therapy pioneer in indications with large addressable markets with a valuation that should be backstopped by economics from licensing out their platform.”
Shares of Regenxbio rose 5% to $19.48 in afternoon trading on Friday but are down 13% year to date.
Contact Sean at sean@proactiveinvestors.com