JMP Starts Ultragenyx At Outperform, Pipeline Maturity Expected To Continue

In a report published Thursday, JMP Securities analyst Liisa A. Bayko initiated coverage of

with a Market Outperform rating and a price target of $119. Analyst Liisa Bayko pointed out that Ultragenyx was a "diversified ultra-orphan disease company with multiple near-term value drivers" and that its shares could continue to rise as "the company's pipeline matures." "Since its inception in 2010, the company has accumulated an impressive portfolio of four clinical stage assets directed at a half dozen, ultra-rare indications and with $343 million in cash, RARE is well capitalized to execute upon its development plan." Bayko expects "multiple" product launches through 2016-2018 to take the company into profitability in 2019 and to annual sales of $1.9B in 2023. Ultragenyx's shares have surged more than 100 percent since the beginning of this year, versus an 18 percent rise in BTK and a 20 percent increase in NBI. The share outperformance of the biotech sector was driven by "a combination of pipeline progress and M&A premium" after the $8B acquisition of

. "We anticipate continued upward momentum as top-line data from several proof-of-concept studies report out over the coming 6-12 months," Bayko said, while adding that there was near-term upside to their model "stemming from the potential for an expedited regulatory path for KRN23 and likely expansion of the clinical stage portfolio, both organically and/or via acquisition."