Solid Biosciences Positioned For Next-Gen Duchenne Muscular Dystrophy Treatment Success: Analyst

Wedbush initiated coverage on Solid Biosciences, Inc. SLDB, a gene therapy company focused on treating Duchenne muscular dystrophy (DMD).

DMD is a genetic disease that causes progressive muscle weakness and wasting.

SGT-003 is the leading program in Solid Biosciences' pipeline, with plans to advance additional projects toward clinical trials in 2025.

The therapy uses the AAV-SLB101 capsid and a specialized cargo (nNOS binding domain) to potentially boost dystrophin expression compared to earlier-generation treatments.

While first-generation gene therapy for Duchenne muscular dystrophy (DMD) opens new treatment possibilities, there is still room for improvement. The analyst writes that Solid Biosciences' innovative approach and novel capsid technology could enhance microdystrophin delivery.

Although the company's pipeline offers multiple opportunities, current projections focus only on SGT-003 for DMD.

The most significant near-term milestone for Solid Biosciences is the initial Phase 1/2 INSPIRE DUCHENNE trial results, expected in the first quarter of 2025.

Approving Sarepta Therapeutics Inc's SRPT Elevidys was a key milestone in treating Duchenne muscular dystrophy (DMD), but it's only the beginning. Newer treatments with better and more reliable results are still needed.

Wedbush analyst writes, "We see Solid Biosciences in a "solid" position to deliver a next-gen therapeutic option."

Wedbush writes that Solid Biosciences' stock trade at around $5 each, with about $4 per share in cash providing some downside protection.

Assuming Solid Biosciences' SGT-003 program follows a timeline similar to Sarepta's Elevidys, even a one-year delay would lower the price target to $11 per share (current price target of $16)—still above the current trading price.

With other programs yet to be included in the valuation, the analyst sees strong potential and initiates with an Outperform rating.

Solid Biosciences ended the third quarter of 2024 with approximately $171.1 million in cash, cash equivalents, and available-for-sale securities, with an anticipated cash runway into 2026.

Price Action: SLDB stock is up 3.21% at $4.83 at the last check on Friday.

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