Market Overview

BofA Revives Myokardia With New Buy Rating

Share:
BofA Revives Myokardia With New Buy Rating
Related MYOK
The Daily Biotech Pulse: Foamix Jumps on Data, Positive Results for Galapagos-Gilead's Rheumatoid Arthritis Drug, Bausch Health Trims Debt
The Daily Biotech Pulse: Advaxis Posts Narrower Loss, Endocyte Announces $175M Offering, Leadership Transition At Insulet

Myokardia Inc (NASDAQ: MYOK) stock is up 290 percent year-over-year, but upcoming stimulants could drive additional outperformance, according to Bank of America Merrill Lynch. 

The Analyst

BofA's Tazeen Ahmad initiated coverage of Myokardia with a Buy rating and $71 price target.

The Thesis

The biotech’s candidates focus on two common cardiovascular diseases with no U.S.-approved therapies.

“We view MYOK’s focus in areas of undermet need which have relatively large addressable populations as providing meaningful upside leverage,” Ahmad said in a Tuesday note. (See the analyst's track record here.) 

Mavacamten demonstrated favorable tolerability and efficacy in a Phase 2 study in obstructive hypertrophic cardiomyopathy. A pivotal Phase 3 trial will begin this year and, by Ahmad's assessment, “should further validate MYOK’s platform.”

Sanofi SA (ADR) (NYSE: SNY)’s recent investment in Mavacamtem is a positive indicator for the drug’s prospects, the analyst said.

At the same time, the data is seen to derisk a parallel study in non-obstructive hypertrophic cardiomyopathy, which is expected to yield Phase 2 results in the second half of 2019.

“We believe both conditions could be underdiagnosed and note multiple opportunities for upside,” Ahmad said. 

The firm’s MYK-491 is seen to represent a more urgent need for a potentially broader population.

Considering Myokardia’s pipeline, BofA anticipates $200-million capital raises in 2019 and 2020 as the programs expand and forecast peak mavacamten sales of $1.5 billion.

Price Action

At the time of publication, Myokardia shares were trading up 2.74 percent at $54.35.

Related Links:

After Biogen's Alzheimer's Update, Wall Street Reacts

Analyst Downgrades Arbutus Biopharma On Valuation After 80% Run

Latest Ratings for MYOK

DateFirmActionFromTo
Oct 2018Cantor FitzgeraldInitiates Coverage OnOverweight
Sep 2018Morgan StanleyInitiates Coverage OnOverweight
Aug 2018JP MorganMaintainsOverweightOverweight

View More Analyst Ratings for MYOK
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill Lynch Tazeen AhmadAnalyst Color Biotech Price Target Initiation Analyst Ratings General Best of Benzinga

 

Related Articles (SNY + MYOK)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Earnings Preview For AngioDynamics

Casa Systems Is Oversold, Morgan Stanley Says In Upgrade