Translate Bio's Novel mRNA Therapy Candidate Addresses A Key Investor Concern, Citi Says

Translate Bio Inc TBIO went public by offering 9.35 million shares. The offering was priced at $13 per share on June 28.

The Analyst

With the IPO quiet period expiring, Credit Suisse analyst Yigal Nochomovitz initiated coverage of shares with a Buy rating and a $20 price target.

The Thesis

mRNA replacement therapy, which Translate Bio uses to treat diseases caused by protein defects or deficiencies, is transient or biodegradable and carries a lower risk of off-target effects relative to gene therapy, analyst Nochomovitz said in a Monday morning note.

The analyst noted the company's lead clinical candidate MRT5005 is in Phase 1/2 study for cystic fibrosis. MRT5005 is designed to be used in all cystic fibrosis points, regardless of CFTR mutation, the analyst added.

MRT5005 was found to induce robust CFTR protein expression in pre-clinical studies, Nochomovitz said. The candidate addresses a key investor concern due to its ability to successfully diffuse across the human CF mucus layer.

Price Action

Since listing with a loss of 11.4 percent on its debut, Translate Bio shares have gained about 38.4 percent.

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