BTIG raised its price target for KalVista Pharmaceuticals (NASDAQ:KALV) to $27 from $18 after the company inked a multifaceted collaboration with Merck (NYSE:MRK) last week. The stock closed at $9.74 on Oct. 13.
KalVista is developing novel plasma kallikrein inhibitors for diabetic macular edema (DME) and hereditary angioedema (HAE). Plasma kallikrein is a validated target in HAE, and is emerging and promising in DME, writes analyst Robert Hazlett.
“We believe this deal underscores the material potential of the plasma kallikrein approach in DME,” he added.
Merck also is taking a 9.9% ownership position in KalVista, which Mr. Hazlett believes signals confidence in KalVista’s approach towards development of oral HAE therapeutics.
