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Wedbush Continues Outperform Rating On Regulus

Wells Fargo Reacts To Regulus News Of FDA Request For Info Regarding Clinical Hold
Jefferies Sees Limited Impact To Gilead From Regulus' HCV Candidate's Clinical Hold

In a report published Thursday, analyst Liana Moussatos of Wedbush Morgan maintained an Outperform rating on Regulus Therapeutics Inc. (NASDAQ: RGLS), with the price target set to $41.

In the report, Wedbush Morgan noted, "For Phase 2 RG-101/HCV testing, we prefer repeat dose monotherapy for simplicity but would like to see combinations with a potential best-in-class DAA in the pipeline and a separate arm with an approved DAA. In our view, the simplest treatment for HCV could be 1-2 shots of RG-101 monotherapy. However, we also view combinations with DAAs as promising. Due to RG-101's robust action--independent of genotype, treatment history and fibrosis stage--for combination treatment the company prefers pan-genotypic DAAs and has narrowed its choices to three. We would like to see one combination arm in the Phase 2 trial with Achillion's pipeline DAA given the rapid cure rate in 6-8 weeks instead of 12 weeks or more by the currently approved DAAs. We also see advantages to using an approved DAA, as well, in case a pipeline DAA is not on the market when RG-101 is potentially launched. The Phase 2 trial is expected to begin in Q2 with initial data release by year-end. We believe investors are likely to focus on monotherapy and potentially best-in-class combinations with rapid cures across genotypes."

"We anticipate the choice of DAA for RG-101 Phase 2 combination arms could provide near-term upside for the stock. The choice of DAA(s) for the combo therapy could also suggest which pharma becomes a partner and we anticipate a lucrative arrangement for Regulus," Moussatos wrote.

Latest Ratings for RGLS

Jun 2016BMO CapitalDowngradesOutperformMarket Perform
Jun 2016Chardan CapitalMaintainsBuy
Apr 2016Chardan CapitalInitiates Coverage onBuy

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Posted-In: Wedbush MorganAnalyst Color Analyst Ratings


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