On Thursday, Citi upgraded Prime Medicine (NASDAQ:PRME) from Neutral to Buy, maintaining a shares target of $10.00. The upgrade follows the recent announcement by Prime that the FDA has cleared an Investigational New Drug (IND) application for PM359, an ex vivo cell therapy for Chronic Granulomatous Disease (CGD), marking a significant step as it is the first clinical program to utilize prime editing technology.
The company has also confirmed its commitment to advancing multiple pipeline programs throughout the remainder of the year. While in vivo programs are still a few years away from clinical trials, Citi finds it promising that many are progressing to lead optimization or IND-enabling studies within the next 12 to 24 months.
According to Citi, Prime Medicine is in a stable financial position, with sufficient cash to fund operations into the second half of 2025. Management is actively working to manage the company's burn rate efficiently.
Business development remains a key focus, and ongoing discussions about potential partnerships, collaborations, or in-licensing deals could provide non-dilutive financing and access to advanced delivery technologies, which would be beneficial for PRME shares.
Citi's analyst has labeled the stock as Buy/High Risk, indicating that while there are high expectations for the company's future, there are also significant risks involved. The price target of $10 per share remains unchanged, reflecting Citi's assessment of the company's potential amidst its recent developments.
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