Aimmune Analysts Bullish On Strong Uptake Of Peanut Allergy Drug Palforzia

Aimmune Therapeutics Inc AIMT announced late Friday that it received FDA approval for Palforzia, its oral immunotherapy to treat peanut allergy.

The Aimmune Analysts

Baird analyst Brian Skorney maintained an Outperform rating and $64 price target for Aimmune shares.

RBC Capital Markets analyst Kennen MacKay has an Outperform rating and $54 price target.

Cantor Fitzgerald analyst Charles Duncan reiterated an Overweight rating and lifted the price target from $55 to $64.

Baird: Palforzia Will Experience Strong Uptake

The clean label of Palforzia and the management's well-informed launch plan are encouraging, Baird analyst Skorney said in a Monday note.

The clean label with respect to the age group of the patient population, no surprises in with the black box labelling and the 60-minute monitoring period following dose escalation should help facilitate strong product launch, the analyst said.

"With 1.6 million patients in the U.S. estimated to have peanut allergies and no previously approved treatments, we believe this market represents an area of significant unmet need."

The analyst projects strong uptake that will be facilitated by the necessary training imparted to allergists in the coming months.

The annual list price of $10,680, though at the high end of expectations, should still achieve good reimbursement, Skorney said.

"Moving forward, we expect that Palforzia will experience strong uptake as Aimmune appears well positioned to help satisfy the significant unmet need in peanut allergy."

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RBC: Labeling Suggests Best-Case Scenario

An indication for "confirmed diagnosis of peanut allergy" in pediatrics and adolescentsthat is not dependent on an undergoing oral food challenge; a monitoring period of 1 hour post-dosing; and label details not restricting maintenance and continued updosing to childhood and enabling continuation through adulthood are three features of the label suggesting a best-case labeling scenario, RBC analyst MacKay said in a Friday note.

The REMS program and black box warning for anaphylaxis are typical of any product approved for an allergy, the analyst said.

The wholesale acquisition pricing of $850 per month, equating to about $10,000 per year, was in line with RBC's expectations.

The company has a six-month supply of Palforzia on hand to meet the initial commercial demand, MacKay said.

Cantor: Enhanced Conviction On Commercial Traction

Palforzia may see robust adoption, transforming peanut allergy treatment by informed allergists who view the risk-reward as favorable for higher-risk/motivated patient/caregiver cohorts, Cantor's Duncan said in a Monday note.

The analyst sees more burdened patients undergoing oral immunotherapy with Palforzia on top of disciplined peanut avoidance as their main peanut allergy management strategy.

"Therefore, we have enhanced conviction on commercial traction becoming increasingly visible in 2020," Duncan said.

Aimmune Price Action

At last check, Aimmune shares were advancing 3.86% to $32.25.