- Morgan Stanley initiated coverage on Akili Inc AKLI with an Equal Weight rating and a price target of $2.
- The analyst notes that Akili's lead product EndeavorRx is indicated for attention deficit/hyperactivity disorder (ADHD). It received marketing authorization from the FDA in mid-2020 as a medical device for patients aged 8-12 with ADHD, and a commercial launch commenced in late 2022
- The data in ADHD is promising and strongly suggestive of a treatment effect. Morgan Stanley anticipates EndeavorRx could generate more than $200 million in peak sales in ADHD.
- The analyst also says that given the skepticism the market currently appears to hold for the sales potential for digital therapeutics, a significant focus on early launch metrics, including script growth and refill rates, is expected.
- An additional area of focus for digital therapeutics broadly (including EndeavorRx) in 2023 will likely be reimbursement.
- Akili is also conducting pivotal studies in additional age groups for ADHD. Pivotal data in patients aged 13-17 and 18+ is expected in 2H23.
- Price Action: AKLI shares are up 5.78% at $1.03 on the last check Thursday.
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