Sep. 16 at 12:28 PM
Stifel reiterated
$RAPP Buy-
$56
$PRAX $XENE OVID ESAIY ABBV BMY ANRO NRXP
Stifel said -- We're reiterating our Buy rating on RAPP, where our thesis is driven by
(1) our bullish view on RAP-219 in epilepsy, where we think the drug is mostly de-risked and
(2) our cautious optimism around upcoming bipolar mania data, which we view as a high risk/high reward readout.
Within this note we lay out the 5 key questions ahead of the data, which center around the mechanistic rationale, "bar" for success, considerations around safety, and stock risk/reward.
In our view, there is only so much diligence one can do on BPD, which, though a very rational indication for studying '219, is a heterogeneous and complicated condition.
KOL feedback does suggest that the efficacy "bar" here is low (just a p-value) and the commercial/revenue upside for '219 could be significant.
Conversely, the stock has run into data, and though FOS supports a high floor, BPM is no longer a free option.
