BofA Revives Myokardia With New Buy Rating

Myokardia Inc (NASDAQ: MYOK) stock is up 290 percent year-over-year, but upcoming stimulants could drive additional outperformance, according to Bank of America Merrill Lynch.

The Analyst

BofA's Tazeen Ahmad initiated coverage of Myokardia with a Buy rating and $71 price target.

The Thesis

The biotech’s candidates focus on two common cardiovascular diseases with no U.S.-approved therapies.

“We view MYOK’s focus in areas of undermet need which have relatively large addressable populations as providing meaningful upside leverage,” Ahmad said in a Tuesday note. (See the analyst's track record here.)

Mavacamten demonstrated favorable tolerability and efficacy in a Phase 2 study in obstructive hypertrophic cardiomyopathy. A pivotal Phase 3 trial will begin this year and, by Ahmad's assessment, “should further validate MYOK’s platform.”

Sanofi SA (ADR) (NYSE: SNY)’s recent investment in Mavacamtem is a positive indicator for the drug’s prospects, the analyst said.

At the same time, the data is seen to derisk a parallel study in non-obstructive hypertrophic cardiomyopathy, which is expected to yield Phase 2 results in the second half of 2019.

“We believe both conditions could be underdiagnosed and note multiple opportunities for upside,” Ahmad said.

The firm’s MYK-491 is seen to represent a more urgent need for a potentially broader population.

Considering Myokardia’s pipeline, BofA anticipates $200-million capital raises in 2019 and 2020 as the programs expand and forecast peak mavacamten sales of $1.5 billion.

Price Action

At the time of publication, Myokardia shares were trading up 2.74 percent at $54.35.

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Latest Ratings for MYOK

Jul 2018	Bank of America	Initiates Coverage On		Buy
Mar 2018	BMO Capital	Maintains	Outperform	Outperform
Mar 2018	Credit Suisse	Maintains	Outperform	Outperform

View More Analyst Ratings for MYOK
View the Latest Analyst Ratings

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