Quantumup
Sep 22, 12:59 PM
Raymond James reiterated
$LXEO Strong Buy-
$24 after the co. announced the acquisition of Mantle Therapeutics & the initiation of add'l research collabs to further advance Lexeo's capabilities to treat Friedrich's ataxia (FA).
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Raymond James said -- On the Mantle deal specifically, we see this as a cost-effective move that both provides technological diversification and underscores the company's commitment to FA.
Although we were not aware of Mantle (which has been operating in stealth) and believe most investors were not either, Mantle's main approach of HDAC inhibition has long been studied in FA, and with promising early data, we wonder if Mantle has cracked the code.
With Lexeo guiding to filing an IND for one of these assets next year and with runway guidance not changed (still into 2028), we see this deal as having limited short-term impact on the stock but an important long-term play at expanding Lexeo's ability to treat a broader FA population.
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