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Why Are Analysts Buying Myokardia?

  • Analysts at Credit Suisse and Wedbush initiated coverage on shares of Myokardia Inc (NASDAQ: MYOK), a small-cap clinical-stage biopharmaceutical company that went public less than a month ago.

  • Both research firms issued Outperform ratings on the stock and expect plenty of upside.

Wedbush

Wedbush seemed to be the most optimistic on Myokardia, having issued an Outperform rating and $22 price target. The firm's experts noted that the company "has a proprietary translational research platform for the development of targeted therapies for cardiovascular (CV) disease, which has typically been treated by a 'one-size fits all' approach."

While developing drugs to treat CV brings many challenges, the analysts shared their view that Myokardia's approach, which places its focus on rare genetically-driven cardiomyopathies greatly reduces its risks, and should help it better navigate the approval waters.

The company has some particularly promising prospects in the hypertrophic cardiomyopathy (HCM) field. If approved, its lead candidate MYK461 would stand as the only disease-modifying therapy available for this condition.

Moreover, they continued, Myokardia's strategic collaboration with Sanofi SA (ADR) (NYSE: SNY) "provides research and financial support and leaves MYOK with substantial economics for its lead product. Sanofi has taken a ~12% equity stake in MYOK, and continued success in the clinic for ‘461 could make MYOK an acquisition target."

Credit Suisse

Analysts at Credit Suisse also decided to award Myokardia an Outperform rating, accompanied by an $18 price target. Similar to Wedbush, the firm sees the small-cap company as one of the "leaders in developing approaches based on precision medicine for rare cardiovascular conditions, with an initial focus on the large unmet need within hypertrophic cardiomyopathy (HCM) and dilated cardiomyopathy (DCM)."

Moreover, there's another investment positive: "the depth of science behind MYOK’s work and clear understanding of the biology behind cardiomyopathy, along with external validation provided by Sanofi collaboration, provides added comfort for a relatively early-stage asset."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for MYOK

Nov 2015

Cowen & Company

Initiates Coverage on

Outperform

Nov 2015

Wedbush

Initiates Coverage on

Outperform

Nov 2015

Credit Suisse

Initiates Coverage on

Outperform

View More Analyst Ratings for MYOK
View the Latest Analyst Ratings

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© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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