On Thursday, Piper Sandler initiated coverage on shares of Unicycive Therapeutics (NASDAQ:UNCY), assigning an Overweight rating and establishing a price target of $9.00. The firm views the biopharmaceutical company as significantly undervalued, trading at approximately its cash value, and sees potential for substantial upside upon the anticipated approval of its lead product candidate, OLC.
Unicycive Therapeutics' OLC is a proprietary phosphate binding agent being developed to treat hyperphosphatemia in patients with chronic kidney disease (CKD). With over 500,000 patients undergoing kidney dialysis in the United States, and approximately 80% using phosphate binders, the market for such treatments was valued at around $1.125 billion in U.S. sales in 2021, and $2.5 billion globally.
Piper Sandler's bullish stance on Unicycive Therapeutics is fueled by the comparison to a competitor, which holds a market capitalization of approximately $1.71 billion. This comparison suggests that Unicycive Therapeutics is currently under the radar of investors.
The company is approaching significant milestones with its lead asset, as it expects to report top-line data from a 16-week Phase 2 trial evaluating OLC's tolerability in CKD patients on dialysis in late second quarter of 2024. Additionally, the firm anticipates a New Drug Application (NDA) filing for OLC by mid-2024 and a potential approval by mid-2025.
Piper Sandler's coverage initiation and positive outlook on Unicycive Therapeutics are based on the potential market opportunity for its lead asset and the upcoming catalysts that could influence the company's stock performance.
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