SVB Leerink initiated coverage of Kalvista Pharmaceuticals (NASDAQ:KALV) with an “outperform” rating and $31 price target. The stock closed at $16.92 on July 26.
Kalvista is creating a new generation of small molecule protease inhibitors for the treatment of hereditary angioedema (HAE) and diabetic macular edema (DME).
“We believe this under-the-radar name, with its two investigational agents, KVD900 and KVD001, targeting plasma kallikrein in different disease settings, could present investors with numerous ways to ‘win’ in the next six-to-12 month,” writes analyst Dae Gon Ha.
He said that while M&A trends in the HAE market suggest that a “de-risked KVD900 could garner interest from large pharma, positive data for VD001 could also lead to non-dilutive financing through Merck.”
Longer term, he said Kalvista’s focus on developing and commercializing small molecule protease inhibitors could open up additional markets beyond HAE and DME.
