Preclinical-Phase Firm Prime Medicine's Gene Editing Platform Has Potential: Analyst

BMO Capital Markets has initiated coverage on Prime Medicine Inc PRME, a preclinical-stage company focused on developing therapies based on prime editing.

BMO analyst's thesis centers on the distinct characteristics of prime editing, notably its high specificity and versatility, which set it apart from other gene editing methods, with the potential to provide superior and more extensive applications.

The analyst Kostas Biliouris initiates with an Outperform rating with a price target of $19.

Prime's pipeline possesses diversified therapies targeting different tissues (liver, eyes, muscles, blood, lungs) and delivered via distinct methods (in/ex-vivo, viral/non-viral), reducing Prime's platform's overall risk.

Prime's lead program aims to provide a gene editing therapy for chronic granulomatous disease (CGD), a rare inherited hematologic disorder. Management is planning to file an IND for CGD in 2024. Despite the small commercial opportunity (approximately $125 million peak unadjusted sales), this program will offer Prime's platform's first clinical/regulatory derisking, increasing confidence in prime editing.

While Prime is currently in its early stages of development, BMO analyst anticipates that near-term partnerships and significant catalysts within the gene editing field can lead to positive outcomes. 

Additionally, as Prime's platform undergoes mid-term derisking, it is poised for substantial growth.

Price Action: PRME shares are down 0.56% at $8.83 on the last check Monday.