On Wednesday, Chardan Capital Markets assumed coverage on MeiraGTx Holdings plc (NASDAQ: MGTX) stock with a Buy rating and a price target of $36.00. The firm expressed confidence in the company's adeno-associated virus (AAV)-based gene therapy pipeline, which is being developed to address unmet medical needs in various diseases.
The analyst highlighted several reasons for the positive outlook, including promising Phase 1 data from the AQUAx study in radiation-induced xerostomia (RIX). The study's progress continues with patient enrollment in the AQUAx2 trial in the United States and Canada, alongside clinical site activations in the United Kingdom.
Additionally, MeiraGTx's recent agreements with Janssen Pharmaceuticals, a Johnson & Johnson (NYSE:JNJ) company, were noted. These include an asset purchase and a commercial supply agreement for botaretigene sparoparvovec (bota-vec), a treatment for X-linked retinitis pigmentosa (XLRP).
These deals are expected to provide MeiraGTx with $15 million in near-term milestone payments in 2024 and up to $285 million upon the first commercial sales of bota-vec and the transfer of manufacturing technology.
The firm also recognized the breadth of MeiraGTx's clinical programs, which span salivary gland, neurodegenerative diseases, and inherited retinal diseases, offering multiple potential upcoming value inflection points. The strength of MeiraGTx's preclinical pipeline was acknowledged, with a particular emphasis on the potential transformative therapies in the ocular, neurodegenerative, and metabolic verticals.
Lastly, MeiraGTx's manufacturing capabilities were highlighted as a key asset. The company owns two manufacturing facilities in London, UK, and Shannon, Ireland, which provide a flexible and scalable infrastructure capable of supporting both clinical and commercial supply needs.
The analyst also mentioned MeiraGTx's AAV-GAD program, which is being considered as a potential treatment for a broader range of Parkinson's patients than the current standard of care. Discussions with regulatory bodies about the design of a pivotal study are ongoing, with the potential initiation of this pivotal study expected in late-2024.
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