RegenXbio's Potential Blockbuster: Analyst is Bullish On Stock Citing Potential Gains From AAV Gene Therapies Resurgence

Baird has initiated coverage on RegenXbio Inc RGNX with an Outperform rating and a price target of $42.

The analyst writes that Regenx has one of the most broad approaches to AAV-based gene therapies. It says RegenXbio can potentially be one of the leaders in the AAV gene therapy space in terms of IP estate, platform capability, and partnered and proprietary programs.

It says AbbVie Inc ABBV partnered ABBV-RGX-314 (subretinal) has already demonstrated years of injection-free living for some patients with neovascular (wet) Age-related macular degeneration, a multi-billion dollar indication for the currently approved drugs. 

Baird analyst says the market underappreciates the opportunity for 314 to carve out a well-described subgroup of patients that could lead to blockbuster sales.

It also says that although pivotal 314 data is about two years away, updated results from the suprachoroidal administration in AMD and diabetic retinopathy in 2H23 should provide the opportunity to move the program from a subretinal operative procedure to an in-office administration, which could substantially enhance the commercial opportunity. 

Noting other gene therapies in development for DMD, MPS II, severe MPS I, and CLN2 diseases, the analyst says Regenx could be the first company to report out microdystrophin expression data from its DMD candidate that could be competitive with Sarepta Therapeutic Inc's SRPT SRP-9001 later this year, positioning them as a fast follower.

Price Action: RGNX shares are up 1.96% at $20.27 on the last check Tuesday.