Stealth BioTherapeutics Corp (NASDAQ: MITO)'s lead drug elamipretide has “blockbuster potential” in primary mitochondrial dysfunction, or PMM, according to BMO Capital Markets.
BMO Capital Markets’ Matthew Luchini initiated coverage of Stealth BioTherapeutics with an Outperform rating and $29 price target.
Mitochondria, which are present in almost every cell in the body, are responsible for 90 percent of the body’s energy needs. Stealth is focused on primary mitochondrial diseases, which can be present at birth or have a later onset, Luchini said in a Tuesday note.
The company announced solid Phase 2 data in PMM and is scheduled to report Phase 3 data by the close of 2019, the analyst said.
The ongoing trial is “relatively de-risked,” and if the results are favorable, even a single Phase 3 study could support FDA approval, Luchini said.
PMM represents a large market opportunity of about $1.2 billion in peak sales given that there are about 190,000 patients in the U.S. and EU with no approved treatment, the analyst said.
Stealth is expected to commence a Phase 2 trial of elamipretide in geographic atrophy in the first quarter, with a data release possible by the end of 2020.
Stealth BioTherapeutics shares were down 4.79 percent at $14.30 at the time of publication Tuesday.
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Latest Ratings for MITO
|Mar 2019||Nomura||Initiates Coverage On||Buy|
|Mar 2019||BMO Capital||Initiates Coverage On||Outperform|
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