There's 'Outsized' Risk-Reward For This Biotech, Morgan Stanley Says, Predicting Shares Could Grow More Than 30%

  • Morgan Stanley has assumed coverage on Ionis Pharmaceuticals Inc IONS with an Overweight (previously Underweight) rating and a price target of $57 from $30 to capture the optionality in these near-term readouts.
  • The analyst has added estimates for Ionis's near-term pipeline products (donidalorsen, fesomersen, IONIS-AGT-LRx, IONIS-FBLRx, and cimdelirsen) as well as associated increases in operating expenses to fund these programs.
  • Related: AstraZeneca - Ionis Eplontersen Achieves Positive Data In Rare Disease Trial.
  • The shift is due to increased confidence in the pipeline and ascribing more credit to the mid-to-late stage assets, as the antisense platform may finally be ready for "prime time" given chemistry modifications, s improved tissue targeting, and reduced risk of adverse events.
  • "Given the significant portion of valuation tied up in cash and Spinraza royalties, we see outsized risk-reward heading into several near-term catalysts over the next 12-18 months," the analyst writes.
  • Price Action: IONS shares are up 6.74% at $47.26 on the last check Friday.


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