On Tuesday, Citi reaffirmed its Buy rating and $40.00 price target for Longboard Pharmaceuticals Inc (NASDAQ:LBPH). The endorsement follows Longboard's announcement of promising initial results from the PACIFIC OLE study, which evaluates the potential of bexicaserin in treating various developmental and epileptic encephalopathies (DEE), including Dravet and Lennox-Gastaut syndromes (LGS).
Longboard Pharmaceuticals' recent data from the ongoing PACIFIC OLE study indicates that bexicaserin could be on track to achieve blockbuster status, with a broad label targeting multiple DEE subtypes. A key End-of-Phase 2 (EOP2) meeting with the U.S. Food and Drug Administration (FDA) is scheduled for the upcoming summer, with the Phase 3 program expected to commence in the second half of 2024.
Despite the presence of competitors in the market and in development, such as Epidiolex, Fintepla, EPX-100, and STK001, Citi sees bexicaserin as a leading candidate. The current treatment landscape for DEE typically involves a combination of three to four anti-epileptic drugs, and branded products often become part of the regimen at later stages.
Citi's analysis suggests that bexicaserin's unique mechanism as a 5-HT2C superagonist could complement cannabidiol (CBD)-based treatments like Epidiolex. This synergy is highlighted by the fact that one-third of the study's participants were already on Epidiolex therapy when they enrolled in the PACIFIC study, indicating potential for combined use in clinical practice.
In other recent news, Longboard Pharmaceuticals has been making significant strides in the biopharmaceutical field with its novel therapeutic candidate, bexicaserin, which targets neurological disorders, particularly epilepsy. Recent clinical trial results of bexicaserin have shown a promising reduction in seizure frequency, which was presented at the American Academy of Neurology 2024 Annual Meeting. The safety profile of the drug has also been deemed favorable, leading to an open-label extension trial, with data expected later in 2024.
Analysts from H.C. Wainwright & Co and Cantor Fitzgerald have maintained a bullish stance on Longboard, with both firms setting a price target of $60. Baird also initiated coverage with an Outperform rating and a price target of $36.00. These ratings reflect confidence in Longboard's clinical pipeline and strategic direction, bolstered by the recent improvement in seizure reduction rates from the PACIFIC study.
Longboard Pharmaceuticals is set to discuss the design of the Phase 3 program in an end-of-Phase-2 meeting with the FDA. Additionally, the company anticipates Phase 1 data for another therapeutic candidate, LP659, in the second quarter of 2024. These recent developments highlight Longboard's potential to address significant unmet needs in epilepsy treatment and its potential to establish bexicaserin as a best-in-class therapy.
InvestingPro Insights
As Longboard Pharmaceuticals Inc (NASDAQ:LBPH) continues to advance its bexicaserin study with promising results, investors and analysts are keeping a close watch on the company's financial health and market performance. According to InvestingPro data, Longboard has a market capitalization of approximately $704.12 million. Despite a challenging profitability outlook, with analysts not expecting the company to be profitable this year, Longboard's balance sheet reflects a positive aspect as it holds more cash than debt. Additionally, liquid assets surpass short-term obligations, indicating a solid liquidity position.
InvestingPro Tips suggest that while Longboard's gross profit margins are weak, there has been a significant price uptick over the last six months, with a 284.5% total return, reflecting growing investor confidence. Moreover, two analysts have revised their earnings upwards for the upcoming period, which could signal potential optimism regarding the company's future financial performance. It's worth noting that Longboard does not pay a dividend, which may be a consideration for income-focused investors.
For those interested in further analysis and additional InvestingPro Tips, there are 8 more tips available for Longboard Pharmaceuticals. To gain access to these insights, visit https://www.investing.com/pro/LBPH and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This information could be invaluable for making informed investment decisions as Longboard navigates the competitive DEE treatment landscape.
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