Oppenheimer: Buy Five Prime Therapeutics, It's Worth $45/Share

In a report published Friday, Oppenheimer analysts initiated coverage on

with an Outperform rating and a price target of $45. Five Prime Therapeutics is a biotech company engaged in developing a functional mAB discovery platform for oncology and autoimmune disorders. The company's lead asset FPA008 is an anti-CSF1R-mAb in P1 development for rheumatoid arthritis, oncology, and PVNS, an ultra-rare disease. "We view FPRX as undervalued given the depth and breadth of its targeted-therapeutics programs that address molecularly defined diseases and that may find rapid routes to registration," the analysts said. In the report Oppenheimer noted, "FPA008 in PVNS alone supports FPRX's current valuation. FPA008's inhibition of CSF1R directly acts on the molecular pathway involved in PVNS, which is caused by translocation-driven over-expression of CSF1. FPA008 is currently in P1 for RA, where it appears to have demonstrated differentiation from competition and best-in-class safety; final data anticipated YE15." The FPA008 inhibition of CSF1R in depleting tumor associated macrophages makes it a strong immune-therapy candidate for multiple solid tumors. The company is also developing FPA144, a selective anti-FGFR2b mAb for the targeted treatment of FGFR2b-amplifed gastric cancer. Five Prime has tied up with

for FPRX and a new data readout is expected in November 2015.