On Thursday, RBC Capital maintained its Outperform rating on Regenxbio Inc. (NASDAQ: RGNX) stock with a steady price target of $35.00. The firm's outlook remains positive ahead of the expected PDUFA decision for a competing drug by Sarepta Therapeutics (NASDAQ:SRPT), which addresses Duchenne muscular dystrophy (DMD) and is set to be announced tomorrow. The analyst noted that despite potential outcomes from the PDUFA decision, Regenxbio is well-positioned to enter the market following Pfizer (NYSE:PFE)'s recent setback.
Regenxbio's strategy includes enrolling older and non-ambulatory patients, which may allow the company to differentiate its product through clinical trial domain expertise and the administration of higher doses.
The firm suggests that even if Sarepta Therapeutics receives a broad label for its DMD treatment, Regenxbio could still secure a market share by treating patients who have pre-existing immunity and cannot receive Sarepta's therapy.
The analyst projects a risk-adjusted upside potential of +15% for Regenxbio's stock based on four different scenarios that might unfold following the PDUFA date. RBC Capital's positive stance is also supported by Regenxbio's current enterprise value of $200 million compared to the $2.8 billion consensus peak sales estimate for Sarepta's product. The firm encourages investors to consider buying shares, especially given the current valuation disparity.
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