Potential Upside For Eiger's Avexitide In Both PBH And CHI Indications: Analyst

Thursday, Eiger BioPharmaceuticals Inc EIGR announced it would focus its development efforts on advancing avexitide in hyperinsulinemic hypoglycemia indications. 

Following a comprehensive review of programs, the company decided to allocate resources towards the potential of avexitide in treating metabolic diseases, with a primary focus on post-bariatric hypoglycemia (PBH), a condition with significant revenue potential. 

Baird raised the price target from $3 to $5 with an Outperform rating, citing prudent reprioritization away from virology.

It says that it is a bit surprising to see PBH shifted ahead of congenital hyperinsulinism (CHI) as the lead avexitide indication. The analyst also says that given its enthusiasm around CHI, it sees upside potential with both opportunities.

The analyst viewed the opportunity for avexitide in congenital hyperinsulinism as attractive for quite some time, and roughly a year ago, it hosted a KOL call with CHI pioneer Dr. Charles Stanley, which fortified the optimism around this indication.

In discussing the reasoning with management, Baird analyst noted that PBH presents a more significant commercial opportunity, even factoring in a potential priority review voucher with potential CHI approval, where rare pediatric disease designation has been granted.

Baird analyst also said the company's strategy to partner its virology programs for peginterferon lambda and lonafarnib is in line with what it noted would be a value-maximizing scenario of eliminating any further spend in HDV and to focus on avexitide.

Prive Action: EIGR shares are up 16.36% at $0.6401 on the last check Friday.