Marinus Pharmaceuticals Has 3 Major Catalysts In 2018, Ladenburg Thalmann Says In Bullish Initiation

Marinus Pharmaceuticals Inc MRNS is a developer of ganaxolone, a therapy intended to treat patients with a rare genetic disorder, and initial data is "looking good," according to Ladenburg Thalmann.

The Analyst

Analyst Michael Higgins initiated coverage of Marinus Pharmaceuticals with a Buy rating and $20 price target.

The Thesis

Marinus' ganaxolone, or GNX, treats people suffering from a CDKL5 deficiency, for which there are no effective therapies, Higgins said in the initiation note. But GNX has shown a significant and durable reduction in seizure frequency among patients with CDKL5 deficiency disorder, the analyst said. (See Higgins' track record here.) 

Encouragingly, the company is simultaneously pursuing a "much larger" opportunity for GNX to treat postpartum depression, and the biotech should release Phase 2 data in the bottom half of 2018, Higgins said.

Marinus is approaching another noteworthy event by the end of the year with proof-of-concept data among 250 refractory status epilepticus patients, the analyst said.

Giving GNX to this patient segment would be "less challenging," as patients aren't in a coma, which should improve outcomes, according to Ladeburg Thalmann.  

Marinus could also see "significant" off-label use in other developmental epileptic encephalopathies, which affect approximately 140,000 Americans as opposed to the roughly 1,600 Americans who have CDKL5 deficiency disorder.

Price Action

Shares of Marinus Pharmaceuticals were rallying 11.5 percent late in Wednesday's trading session. 

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