On Tuesday, H.C. Wainwright maintained its Buy rating and a $22.00 stock price target for NASDAQ:LXEO, Lexeo Therapeutics. The firm's stance comes after Lexeo shared Phase 1/2 trial results for its LX2006 drug, aimed at treating cardiomyopathy due to Friedreich's ataxia, on Monday.
Lexeo reported that 75% of patients with elevated left ventricular mass index (LVMI) saw reductions of 10% or more after 12 months. Furthermore, all patients with 18 months of follow-up exhibited a 15% or greater reduction in LVMI.
The analyst highlighted the favorable safety profile of LX2006, noting the absence of treatment-related serious adverse events and no cardiac or hepatic safety signals. All adverse events (AEs) reported were transient and resolved, which is seen as a positive for the risk profile of this one-time gene therapy. The company has proceeded to dose a patient at the third and highest dose level and continues to enroll participants, suggesting tolerability at this increased dosage.
Despite these positive trial outcomes, Lexeo's stock experienced a significant drop, closing down 26% on Monday, in contrast to the XBI's 1% gain. The market's reaction is attributed to the potential delay in the trial progression due to the introduction of a higher third dose level, which could postpone the treatment of more patients at an optimal dose level.
H.C. Wainwright reasserted its confidence in Lexeo's stock, reaffirming the $22 per share price target. The firm believes that the initial negative reaction to the trial update does not detract from the long-term potential of LX2006 and its benefit/risk profile. As Lexeo continues to enroll patients at the higher dose level, the firm maintains its positive outlook on the stock's future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.