mirko_papuga
Sep 25, 3:10 AM
$SANA 6 ‘Moonshot’ Biotech Stocks That Offer Big Risks, Bigger Rewards
https://www.barrons.com/articles/biotech-stocks-buy-risk-reward-ba468bd0?mod=hp_FEEDS_3_BIOTECHANDPHARMA_3
Sana Biotechnology is possibly the biggest gamble. The company has yet to commercialize any of its products. With shares trading around
$3 on Tuesday, this gives it a market capitalization under
$1 billion, making it the smallest player on the list.
However, the most speculative pick might also have the most potential: Sana’s candidate SC451 in Type 1 diabetes could restore insulin production in a one-time treatment without suppressing a patient’s immune system. Analysts believe the next biggest challenge is manufacturing, describing it as “the key scale test.”
Morgan Stanley sees the stock price increasing more than fivefold to
$67 from its
$12 target, based on roughly
$12 billion in unadjusted U.S. sales, 34% peak market share for the indication, and 100% probability of success. Their base case assigns just a 20% of success, 23% peak market share and
$1.9 billion in risk-adjusted sales.
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