Analyst Highlights Regulus Therapeutics' 'Disruptive 2016 Catalysts'

Chardan Capital’s Madhu Kumar expects Regulus Therapeutics Inc’s RGLS assets to witness several “value-enhancing” catalysts over the coming months.

The analyst initiated coverage of Regulus Therapeutics with a Buy rating and price target of $15.

“Disruptive Catalysts”

“After advancing two internally-developed product candidates in ongoing or completed clinical trials, with RG-101 producing potentially disruptive results in chronic hepatitis C virus (HCV), Regulus has demonstrated a leadership role in the development of microRNA (miRNA) therapeutics,” Kumar mentioned.

Among the catalysts expected for the company’s assets is the interim Phase II data for RG-101 in HCV, which is scheduled to be presented on April 15, at the EASL International Liver Congress.

Kumar expects the primary analysis of Phase II data for RG-101 in 2Q16 and the initiation of the Phase II trial for RG-012 in Alport syndrome in 1H16 to also act as “disruptive catalysts.”

Interim data from the Phase II trials for the combination therapy of RG-101 and GSK-175 is expected in 4Q16, which could also be a positive catalyst.

“Three Compelling Investment Attributes”

Kumar also stated that based on Chardan Capital’s proprietary Small RNA Therapy Framework, “continued success for Regulus is justified by three compelling investment attributes.”

These attributes include the high prices “driving demand for treatment burden reduction in HCV, which RG-101 has the potential to provide.”

In addition, RG-012 is likely to offer additional upside in the treatment of kidney fibrosis, while Regulus Therapeutics has access to about 850 patents and patent applications through its founding companies.