SVB Leerink initiated coverage of Myovant Sciences (NYSE:MYOV) with an “outperform” rating and $26 price target. The stock closed at $7 on Aug. 16.
“Myovant’s lead product, relugolix, is poised to become the second gonadotropin releasing hormone antagonist for treating endometriosis (EM) and uterine fibroids (UF),” writes analyst Ami Fadia.
“We believe expectations for Myovant have been reset following the recent relugolix Phase 3 data in UF, which may have been disappointing relative
to expectations for a best-in-class profile,” she added.
However, at current levels, Ms. Fadia said the market might be underestimating relugolix’s $1-billion sales potential in 2025 based on its tolerability profile and convenient dosing regimen.
She views two Phase 3 study readouts in EM in the first half of 2020 as the key upcoming catalyst for Myovant. “Others we would be watching include Phase 3 data in prostate cancer estimated for the fourth quarter of 2019, FDA approval of the UF indication estimated for the third quarter of 2020 and the sales trajectory for AbbVie’s Orilissa.
