Millendo's Lead Asset Could Address Unmet PWS Need, Wedbush Says

Millendo Therapeutics Inc’s MLND lead asset livoletide is in a registrational study (ZEPHYR) for the treatment of PraderWilli Syndrome (PWS), which is an unmet need, according to Wedbush.

The Analyst

Wedbush’s Laura Chico initiated coverage of Millendo Therapeutics with an Outperform rating and a price target of $24.

The Thesis

Although Millendo Therapeutics is a newer player in the biotech public market and the PWS market is small, it represents a so-far unmet need, Chico said in the note.

About 10,000 patients suffer from PWS in the US, and there are no treatments available for the hallmark syndrome, hyperphagia, the analyst mentioned. She added that in Phase 2a, livoletide data demonstrated “a clinically meaningful change” among subjects at home versus placebo.

Livoletide is now in the registrational Phase 2/3 ZEPHYR study, the data from which is scheduled to be released in the first half of 2020. Additional data is also forthcoming for the company’s second asset, nevanimibe. With these two releases, Millendo Therapeutics is “approaching an important value-creating period,” Chico wrote.

While the company’s share price has been under pressure since June, declining 30%, livoletide’s success could lend upside to the stock.

Price Action

Shares of Millendo Therapeutics fell 0.5% to $10.59 at time of publishing on Friday.