Ladenburg Thalmann On Biotech: Buy BioCryst, Albireo Shares

Biotechnology stocks have experienced high price and volume fluctuations that “have often been unrelated or disproportionate to the operating performance of companies, ” according to Ladenburg Thalmann analysts. Against this backdrop, Ladenburg Thalmann initiated coverage of two biotech companies, recommending their stocks.

BioCryst

Analyst Christopher S. James initiated coverage of BioCryst Pharmaceuticals, Inc. BCRX with a Buy rating and a price target of $11.

James said BioCryst was well positioned to become “a leading oral drug rare disease company.”

Furthermore, the analyst expects R&D investments in the hereditary angioedema franchise and an important Phase 2 data readout with BCX7353 to drive the stock in 2017. BCX7353 is BioCryst's lead drug candidate. The Phase 2 readout is expected in Q1 2017.

“In addition to its core orphan drug business, BioCryst has two infectious disease assets that provide supportive capital; namely, Rapivab (peramivir injection) an FDA approved drug for influenza and galidesivir (BCX4430), the only small molecule drug to show efficacy in monkeys infected with either Ebola or Marburg virus,” James wrote.

Related Link: BioCryst Receives Health Canada Approval for RAPIVAB® for the Treatment of Influenza

Albireo

Analyst Matthew L. Kaplan initiated coverage of Albireo Pharma, Inc. ALBO with a Buy rating and a price target of $40. The company’s lead program, A4250, seems to be on track for its Phase 3 development launch in the first of 2017 for the treatment of an orphan pediatric disease.

Referring to A4250, Kaplan mentioned that Phase 2 data was encouraging, Phase 3 data could be expected in mid-2018 and an NDA filing is likely to be year-end 2018. This would allow approval in the United States and EU by year-end 2019.

“We believe A4250 could offer a differentiated game changing product profile for the treatment of pediatric cholestatic liver diseases with greater than $975 million of revenue at peak in the U.S.,” the analyst wrote. Albireo’s elobixibat is already in Phase 3 for the treatment of chronic idiopathic constipation.

“We believe Albireo's drug discovery platform positions the company well to discover and develop highly differentiated products for commercially attractive markets,” Kaplan commented.

At Last Check

• Shares of Albireo were up 5.72 percent at $21.44.
• BioCryst Pharma shares were up 6.33 percent at $6.55.