Brookline starts Chiasma at buy; PT $15

Brookline Capital Markets initiated coverage of Chiasma (NASDAQ:CHMA) with a “buy” rating and $15 price target.

Chiasma is developing Mycapssa as potential maintenance treatment for adults with acromegaly, a hormonal disorder that develops when the pituitary gland produces too much growth hormone during adulthood.

“Mycapssa is expected to be the first oral somatostatin analog to be approved in an injectable-only market and should gain meaningful market share based on its differentiated profile,” writes analyst Kumaraguru Raja.

Recently announced top-line data from the Phase 3 CHIASMA OPTIMAL trial was positive. He expects the company to resubmit its NDA by the end of 2019, with U.S. approval in mid-2020 following a six-month PDUFA review.

The somatostatin analog market for the treatment of acromegaly is valued at about $800-million globally. “We foresee a compelling low risk-high reward going into the NDA review and 2020 launch,” Mr. Raja said.

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