Analyst Bullish On Gene Therapy-Focused Voyager Therapeutics Sees Best In Class Potential For Its Neurogenetic Medicine Platform

H.C. Wainwright initiated coverage on Voyager Therapeutics Inc VYGR, noting a growing franchise of novel, highly-differentiated adeno-associated virus (AAV)-based TRACER capsids with the potential to overcome limitations of central nervous system (CNS) delivery and systemic toxicity of 1st-generation AAVs.

The analyst writes that Voyager’s TRACER capsid discovery platform has best-in-class potential for developing CNS-targeted in vivo gene therapies.

Voyager is advancing its Tropism Redirection of AAV by Cell Type-Specific Expression of RNA (TRACER) capsid discovery platform to develop novel capsids, the outer viral protein shells that enclose a genetic payload that makes up the gene therapy product, with enhanced affinity, to the CNS. 

H.C. Wainwright notes that while gene therapy remains its core technology, Voyager’s pipeline also includes an anti-tau monoclonal antibody (mAb) program in Alzheimer’s disease (AD), which is expected to be followed by a combination approach with potential best-in-class in vivo gene therapies.

Voyager’s wholly-owned and partnered programs are expected to lead to at least four investigational new drug application filings in 2024 and 2025, potentially generating key clinical proof-of-biology data as early as 2025.

H.C. Wainwright has initiated with a Buy rating and a price target of $30.

Voyager had approximately $431 million in pro-forma cash as of December 31, 2023, adjusted for $100 million consideration from Novartis agreements and a $100 million public offering, providing a cash runway into 2027.

In January, Voyager Therapeutics announced a collaboration with Novartis AG NVS to advance potential gene therapies for Huntington’s disease (HD) and spinal muscular atrophy (SMA).

H.C. Wainwright notes that the TRACER platform has produced promising preclinical data. 

This success has led to strategic partnerships with major players in neurological disease drug development, including Novartis, Neurocrine Biosciences Inc NBIX, Sangamo Therapeutics Inc SGMO, and Alexion, AstraZeneca Plc’s AZN subsidiary. These partnerships are expected to bring significant long-term value to shareholders.

Price Action: VYGR shares are up 9.57% at $9.96 on the last check Tuesday.

Illustration of Phrama lab worker created with MidJourney.