Market Overview

Analyst: AveXis M&A Could Support Interest In Regenxbio

Analyst: AveXis M&A Could Support Interest In Regenxbio

Regenxbio Inc (NASDAQ: RGNX) rode a tailwind Monday from the announced acquisition of its partner AveXis Inc (NASDAQ: AVXS), and the benefits may keep coming.

The Rating

Chardan analyst Gbola Amusa reiterated a Buy rating on Regenxbio and increased the price target from $85 to $90.

The Thesis

AveXis’ sale to Novartis AG (ADR) (NYSE: NVS) bodes well for Regenxbio, a stakeholder in AVXS-101, Amusa said in a Monday note. (See the analyst's track record here.) 

“We believe the size of the AveXis deal may mean consensus is underestimating the impact of AVXS-101 royalties on REGENXBIO, which could begin to be paid as early as 2018 (blue skies) and drive profitability for RGNX in 2019,” the analyst said. 

At the same time, the AveXis buyout positions Regenxbio for a merger of its own, according to Chardan. 

Amusa said he expects Novartis to be a continued consolidator in the AAV-based gene therapy space, and Regenxbio’s Phase 1/2 data for wet age-related macular degeneration is seen to be “one of the most important results in vector gene therapy” this year.

“We believe REGENXBIO would go into play if the upcoming datasets are robust,” Amusa said, noting that wet AMD is a key market for Novartis.

Chardan's price target represents 177-percent upside to Regenxbio's share price at midday Monday.

Price Action

At the time of publication, Regenxbio was trading up 19.3 percent at $32.45. 

Related Links:

Solid Biosciences Snags Bullish Initiation As It Develops Gene Therapy For Muscular Dystrophy

5 Reasons Why Vuzix Is One Of Chardan Capital's Top Picks In 2018

Photo via Wikimedia. 

Latest Ratings for RGNX

Jun 2020B of A SecuritiesReinstatesBuy
May 2020RBC CapitalInitiates Coverage OnSector Perform
May 2020Morgan StanleyMaintainsOverweight

View More Analyst Ratings for RGNX
View the Latest Analyst Ratings


Related Articles (RGNX + AVXS)

View Comments and Join the Discussion!

Posted-In: Analyst Color Biotech M&A News Health Care Price Target Reiteration Top Stories Best of Benzinga

Latest Ratings

GDOTCanaccord GenuityMaintains56.0
SPRCanaccord GenuityMaintains20.0
KTOSCanaccord GenuityMaintains22.0
IPGPCanaccord GenuityMaintains174.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at