UPDATE: BMO Capital Markets Raises PT on Regulus Therapeutics Following 2Q13 Operating Results

In a report published Wednesday, BMO Capital Markets analyst Jim Birchenough reiterated an Outperform rating on Regulus Therapeutics RGLS, and raised the price target from $10.00 to $15.00.

In the report, BMO Capital Markets noted, “RGLS reported 2Q13 operating results late yesterday and provided an update on key developments. GAAP net loss per share of ($0.20) was wider than ($0.10) consensus, and RGLS ended 2Q13 with $82.7 mn in cash, sufficient to 2017. With focus on microRNA (miR) therapeutics development, RGLS highlighted its clinical candidate RG-101 targeted at miR-122 in patients with HCV, on track for an IND filing in 1H14. RG-101 was described as well-tolerated and having a pan-genotypic effect in HCV and a PK profile supporting potential qmonthly dosing. RGLS also highlighted its access to Alnylam's GalNac conjugation chemistry, which allows targeted hepatic delivery of RG-101, in HCV and potentially miR-221, in hepatocellular carcinoma (HCC). Additional programs highlighted included anti-miR21 for renal fibrosis, including Alport Syndrome, an orphan disease characterized by end-stage renal disease. Anti-miR21 reduced renal fibrosis and improved renal function in a rodent model of Alport Syndrome and is the focus of an option agreement with Sanofi ending in December 2013.”

Regulus Therapeutics closed on Tuesday at $8.25.