Miragen Therapeutics, Inc. MGEN, a development-stage biotech company, has product candidates for hematologic cancers and fibrotic diseases in its pipeline.
The Analyst
Oppenheimer analyst Leah Rush Cann initiated coverage of Miragen with an Outperform and a 12-18-month price target of $13.
The Thesis
Miragen is expected to commercialize its development-stage drugs, namely MRG-106 in cutaneous T-cell lymphoma in 2022 and MRG-201 in cutaneous fibrosis in 2025, Rush Cann said in a Thursday note.
The biotech company will have its first product revenues of $414.4 million in 2022, the analyst said. This could potentially grow to $1.2 billion in 2025 if both product candidates are successful in their planned indications, she said.
Oppenheimer's estimates are based on the assumption that Miragen will launch MRG-106 in 2022 and MRG-201 IN 2024, Rush Cann said.
"We estimate that MiRagen's operating losses will continue until the launch of its first compound and that the company will turn profitable in 2022 as revenue starts to meaningfully offset losses."
The firm estimates diluted earnings per share to be negative through 2021, inflecting to positive in 2022.
Miragen might have to raise $600 million between 2018 and 2021 to finance the launch of its two molecules, according to Oppenheimer.
The Price Action
Miragen shares are down over 21 percent over the past year.
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