fbpx
QQQ
-2.71
348.05
-0.78%
DIA
-5.86
344.51
-1.73%
SPY
-7.07
429.04
-1.68%
TLT
+ 2.69
140.35
+ 1.88%
GLD
-0.87
166.72
-0.52%

Why The Biogen-Ionis News Is A Boon For AveXis

by
December 27, 2016 11:13 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Biogen Inc (NASDAQ: BIIB) shares were seen up 2.9 percent and Ionis Pharmaceuticals Inc (NASDAQ: IONS) up 4.42 percent on Tuesday following news that the FDA has approved Spinraza for treatment of spinal muscular atrophy. At the same time, shares of rival drug maker AveXis Inc (NASDAQ: AVXS) were seen down 4.18 percent on the day. However, Chardan analyst Gbola Amusa believes the market may be under-appreciating the potential of AVXS-101.

Amusa pointed out the 0 percent death rate in AVXS-101 patients so far, which is much lower than the 23 percent death rate in Spinraza and the 43 percent death rate in untreated patients.

“While we note that ENDEAR is placebo-controlled (n=72) and the AVXS-101 phase I study (n=15) is open-label, we believe the natural history of death for AVXS-101 patients, in a population group that is genotyped, suggests that AVXS-101 is a breakthrough therapy (as the probability of achieving AVXS-101’s results may be 1 in 7.5 billion) [and] that doctors and parents will prefer [it] for offering the potential for much lower rates of death than has been suggested so far with Spinraza,” Amusa explained.

Chardan has a Buy rating on AveXis and an $85 price target for the stock.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Analyst: AveXis M&A Could Support Interest In Regenxbio

Chardan: Why The Novartis-AveXis Acquisition Is Good News For The Gene Therapy Space

Argus Downgrades Biogen On Trial Delays, Competition In MS, Alzheimer's Drugs

AveXis Offers Easily The Best Treatment Option For SMA Type-1 Patients