Quantumup
Oct 2, 11:02 AM
Needham🏁
$LBRX Buy; PT
$68
SNY
$SPTX BMY JNJ PRAX ABBV
$RAPP OTSKY MPLT TEVA VNDA NMRA BHVN HLUBF HLBBF
Needham said -- We initiate coverage on LBRX with a Buy rating and
$68 PT with the following investment thesis:
(1) LB-102, is an improved version of amisulpride, one of the most effective antipsychotics OUS, and de-risked based on extensive data,
(2) NOVA-1 data in schizophrenia supported best in-class efficacy and safety (EPS, sedation and QTc typically limit D2 agents); weight gain likely modest and self-limiting based on amisulpride's experience,
(3) Bimodal mechanism supports multiple indications (e.g., BPD, adj. MDD) de-risked by amisulpride's use OUS,
(4) We estimate sales growing to ~
$2.9B by 2035 (vs
$2.8B cons.) across the first three indications.
Several catalysts over next 18 mo should drive momentum in LBRX including FDA alignment on negative symptoms study (YE26), Ph 3 data in schizophrenia (1H27) and Ph 2 data in adj. BPD (1Q28).
