Wedbush Sees Nearly 30% Upside In ProNAi Therapeutics, Initiates At Outperform

In a report published Monday, Wedbush analyst David M. Nierengarten initiated coverage of ProNAi Therapeutics Inc DNAI with an Outperform rating and a price target of $36. Analyst David M Nierengarten pointed out that ProNAi was developing a novel therapeutic platform based on DNA interference. The company's lead candidate, PNT2258, was a first-in-class DNAi therapeutic targeting the "BCL2 oncogene, which is over expressed in a wide variety of cancers." In the report Wedbush noted, "We view the early signs of efficacy seen with PNT2258 in a range of hematological malignancies as highly encouraging, especially given the refractory nature of the patient population. In addition, we believe its unique mechanism of action and relatively benign safety and tolerability profile will make PNT2258 combinable with a variety of anti-cancer agents." Following strong efficacy data demonstrated in the Phase 2 trial of relapsed refractory NHL patients, the company was recruiting patients for a Phase 2 open-label study. The safety and efficacy data for the trial are expected in mid-2016 and the company may opt for accelerated filing in case of compelling results, Nierengarten added. The company was also initiating an open-label Phase 2 study of PNT2258 in approximately 50 patients with Richter's transformation. "We expect positive data would lead to accelerated approval in this setting with significant unmet medical need," the report stated. Nierengarten added that ProNAi's DNAi technology was likely to be "applicable to a number of difficult-to-target oncogenes."