Voyager Therapeutics’ announcement that it has entered into an additional up to $1.2 billion collaboration with Novartis AG (ADR) (NYSE:NVS) for its TRACER capsids to develop potential gene therapies for Huntington’s disease and spinal muscular atrophy has Baird analysts positive on Voyager’s long-term outlook.
“Moving forward, we continue to be encouraged by high level of partnership interest in TRACER and maintain positive on Voyager shares as we look ahead to what are likely to be transformative years for the company,” the analysts wrote in a note to clients.
“With recent deals with Pfizer, Neurocrine, and Sangamo, as well, all within the last couple of years, we continue to believe that high degree of outside interest provides strong validation for the potential of the TRACER capsids.”
The analysts wrote that they see Voyager’s shares appreciating substantially in the coming years as management continues to expect three gene therapies will enter clinical trials by the end of 2025.
“Given the rapidity of clinical effects seen with gene therapies we believe Voyager could be poised to reach clinical proof-of-concept data soon after these programs enter the clinic, representing a potentially transformative catalyst,” they wrote.
“Additionally, it is also likely early clinical results from the initial tau Alzheimer's program (Investigational New Drug (IND) application expected in the first half of 2024) will be available in 2025/2026.”
They also noted that with $100 million secured upfront through the Novartis agreement, management said it has a cash runway into mid-2026.
“All told, with a number of key catalysts now within the cash guidance, we believe that Voyager shares are poised to move higher ahead of these readouts as enthusiasm for the company's platforms continues to build,” the Baird analysts wrote.
The analysts awarded the stock an ‘Outperform’ rating and a price target of US$18.
Voyager shares traded up 19.3% at US$10 on Tuesday afternoon.