Ionis Pharma: Needham and Laidlaw remain positive following corporate update yesterday morning -- stock +7% on Noavartis (NVS) collaboration
- Needham thought the most important update on Ionis' pipeline webcast was new data from the COMPASS trial that increase their conviction in a positive readout for APPROACH in familial chylomicronemia syndrome (FCS) this quarter. Along with the recent Spinraza approval, we believe Ionis is on a potential rapid path to sustainable profitability. Investors, however, appeared to be focused more on the discontinuation of IONIS-DMPK-2.5Rx. Ionis said the drug had encouraging effect on biomarkers, but insufficient potency. Ionis and partner Biogen instead intend to bring forward a more potent LICA version. IONS shares have pulled back since the recent Spinraza approval, and they view today's additional weakness as providing an attractive entry point going into a year with multiple catalysts.
- Laidlaw notes IONS provided a pipeline update this morning with highlights on Volanesorsen, two completed Phase II programs: IONIS-GCGRRx and IONIS-FXIRx, and the earlier stage IONIS-DMPK-2.5Rx program. They are reiterating their Buy rating and $65 target price from to reflect bullish view on progress in IONS's pipeline, especially Volanesorsen, Spinraza and IONIS-TTRRx.
- These notes were out before the partnership with Novartis (NVS) was announced this morning.