Regulus Therapeutics Surges 10% Amid Deutsche Bank Report

Deutsche Bank initiated coverage on Regulus Therapeutics Inc RGLS in a report issued Monday with a Buy rating and $30 price target.

Analysts led by Alethia Young noted that “Regulus is a platform company focused on developing drugs targeting microRNAs. microRNAs used to be deemed genetic "junk", but we have learned that they are key genetic regulators.”

“The comany was formed by leaders in RNA & antisense, Alnylam and ISIS. Regulus has exclusive licenses that allow them to use technology for both Alnylam (GalNAc) and ISIS (2.5 gen chemistry). Data in HCV patients for RG-101 was compelling after 1 dose, but more importantly it provided the first validation for the platform,” according to Young.

Young assumed “peak HCV sales of $1.5B” and “peak AS sales of $1.2B to Regulus (assuming profit split with Sanofi). At 100 percent success, RG-101 is worth $37/sh while AS is worth $59/sh. Regulus has the potential to move assets into the clinic at an annual rate like Alnylam and ISIS w/this kind of technology.”

Regulus Therapeutics Inc recently traded at $17.87, up 10.10 percent.