Barclays Raises Acceleron Price Target On Positive Luspatercept Data

Barclays has raised the price target of Acceleron Pharma Inc XLRN shares to $42 (18.5 percent upside) from $40, based on a recent data showing luspatercept's durability of response in MDS.

Myelodysplastic Syndromes (MDS) is a condition where the bone marrow does not produce enough healthy blood cells. Acceleron presented its longer-term phase 2 luspatercept data in MDS and beta-thal over the weekend at the EHA meeting in Copenhagen.

Barclays said, "Data across both indications showed higher response rates." In addition, improved breadth of response was "a positive surprise, but our critical takeaway was the drug's durability of response — which shows no signs of waning, now out to 15 months in MDS."

Related Link: Acceleron, Celgene Offer Updated Results From Ongoing Phase 2 Study Of Luspatercept

"This level of efficacy, with continued excellent tolerability, is setting the drug up for multi-year duration of treatment based on our talks with hematologists. As such, we are taking our duration assumption up by ~20 percent to 22 months — which could still be conservative, and be reaffirmed by data at ASH," analyst Carter Gould wrote in a note.

As a result, the analyst raised luspatercept peak sales forecast to $2.1 billion from $1.9 billion.

Gould, who rates Acceleron Overweight, said the following are the upcoming catalysts for the stock:

• "Longer-term luspatercept phase 2 data and data in ESA naive patients at ASH."
• "Likely incremental commentary from partner Celgene Corporation CELG at its ASH analyst event."
• "Sotatercept clinical development plans are expected in 2H."
• "ACE-083 — Data from the two remaining cohorts of the phase 1 study are expected in 3Q; phase 2 FSHD study to start this year."

Shares of Acceleron closed Friday's regular trading session at $35.44 and were up 0.73 percent on Monday at time of writing.