On Friday, Goldman Sachs (NYSE:GS) initiated coverage on Regenxbio Inc. (NASDAQ:RGNX), assigning the stock a Buy rating with a 12-month price target of $38.00. The coverage begins as the analyst sees potential for the company's gene therapy platform to make significant advances in several medical markets, including ophthalmology, Duchenne muscular dystrophy (DMD), and Hunter syndrome.
Regenxbio's technology, which is based on adeno-associated virus (AAV) vectors, is being developed to expand the range of treatable patient populations. The company's focus on conditions like wet Age-related Macular Degeneration (AMD (NASDAQ:AMD)) and diabetic retinopathy within ophthalmology, DMD, and Hunter syndrome is noted as an approach to address unmet medical needs.
The analyst acknowledges the recent underperformance of gene and cell therapy stocks, which has been attributed to macroeconomic factors and interest rates. However, they highlight a series of upcoming catalysts that could potentially boost Regenxbio's shares. These include additional DMD data, a filing for Hunter syndrome treatment, and data on suprachoroidal treatments for wet AMD and diabetic retinopathy expected in the second half of 2024.
Furthermore, data and a filing for a subretinal treatment for wet AMD are anticipated in 2025.
The endorsement from Goldman Sachs reflects optimism about Regenxbio's prospects in delivering therapies for diseases with high unmet needs. The company's pipeline and expected data releases are set to be key drivers of its share performance in the near to intermediate term. With the new price target, Goldman Sachs suggests a substantial upside to the current trading levels of Regenxbio's stock.
In other recent news, Regenxbio Inc. has been the focus of several significant developments. The company's first-quarter financial report revealed a total revenue of $15.6 million and a net loss of $63.3 million, lower than the estimated $70.7 million. H.C. Wainwright subsequently increased its price target on Regenxbio shares, citing the successful CAMPSIITE trial as a key factor.
The trial's pivotal phase met its primary endpoint, with RGX-121 treatment leading to a significant reduction in cerebrospinal fluid levels of D2S6 at 16 weeks. This development is central to Regenxbio's anticipated Biologics License Application for RGX-121, aimed at treating mucopolysaccharidosis type II, expected to be filed in 2024.
Additionally, Regenxbio reported a robust financial position of $381 million at the end of the first quarter of 2024, up from $314 million at the end of 2023. The company also highlighted the successful advancement of its gene therapy pipeline, including treatments for Duchenne muscular dystrophy and eye diseases, with a strong financial position expected to fund operations into 2026.
InvestingPro Insights
As Regenxbio Inc. (NASDAQ:RGNX) garners a positive outlook from Goldman Sachs, real-time data and insights from InvestingPro provide additional context for investors. With a Market Cap of approximately $677.76M and a Price / Book ratio of 1.73 as of the last twelve months leading into Q1 2024, the company's financial standing is worth noting. Despite challenges, Regenxbio holds more cash than debt, a sign of potential resilience, as highlighted by an InvestingPro Tip. Nevertheless, the company faces headwinds with a -20.9% revenue growth over the last twelve months and a significant -40.77% price total return over the last three months, reflecting the market's current sentiment.
InvestingPro Tips further reveal that Regenxbio is quickly burning through cash and has not been profitable over the last twelve months, which aligns with analysts' expectations that the company will not be profitable this year. Additionally, with liquid assets exceeding short-term obligations, Regenxbio has some financial cushioning to navigate the short-term market volatility. For investors seeking a deeper dive into Regenxbio's financials and future prospects, InvestingPro offers a wealth of additional tips. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to an expanded list of insights on Regenxbio and other companies of interest.
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