Why Newly Listed Korro Bio Shares Are Gaining Today

H.C. Wainwright initiated coverage on Korro Bio Inc KRRO, a biotech company developing genetic medicines focused on editing ribonucleic acid (RNA) to treat various diseases.

Recently, Korro Bio went public via a reverse merger with Frequency Therapeutics Inc. in an all-stock merger transaction. 

Approximately $170 million post-transaction cash is expected to fund operations into 2026.

The analysts Mitchell S. Kapoor and Raghuram Selvaraju initiated with a Buy rating and a price target of $100 per share. 

H.C. Wainwright notes that Korro's core technology, Oligonucleotide Promoted Editing of RNA (OPERA), leverages native biology, whereby a naturally occurring enzyme makes a targeted base edit in the RNA sequence, resulting in desired protein translation and function.

Korro's OPERA platform enables a broad pursuit of indications with an initial focus on six potential programs that either correct the mutation or create de novo protein variants that can address the disease.

The analyst highlights the fact that Korro's preclinical data was generated using a lipid nanoparticle that was utilized in the approved RNA interference (RNAi)-based therapeutic, Alnylam Pharmaceuticals Inc's ALNY Onpattro (patisiran) indicated for polyneuropathy in people with hereditary transthyretin-mediated amyloidosis, a rare disorder.

The company's lead program is Oligo A for alpha-1 antitrypsin deficiency (AATD), a rare genetic disorder that primarily affects the lungs and liver, leading to lung conditions and liver disease.

Price Action: KRRO shares are up 27% at $62.26 on the last check Monday.