BTIG ups Eidos Therapeutics PT to $56 from $38

BTIG raised its price target for Eidos Therapeutics (NASDAQ:EIDX) to $56 from $38 after a committee of the board unanimously rejected a share exchange offer from its parent company, BridgeBio Pharma, (NASDAQ:BBIO) to purchase all outstanding common stock of Eidos that it currently doesn’t own. Shares of Eidos closed at $45.53, up $1.23, on Sept. 12.

BridgeBio, which currently owns 67% of Eidos, offered to exchange 1.30 shares of its own stock for each share of Eidos. 

“We always found it hard to imagine the combined BridgeBio as a more attractive investment than its crown jewel,” writes analyst Thomas Shrader. “Eidos seems to agree and now has the option to explore other opportunities.”

Calling the board decision a “declaration of independence,” Mr. Shrader raised his modeled price of Eidos’ AG10 to $225,000 per patient from $175,000. In addition, he is adding revenue forecasts based on the licensing deal with Alexion Pharmaceuticals (NASDAQ:ALXN) to develop and commercialize AG10 in Japan reached earlier this week. 

Eidos currently is enrolling patients in a Phase 3 trial in the U.S. and Europe with AG10 in patients to potentially stabilizetetrameric transthyretin, thereby halting a series of molecular events that give rise to amyloidosis. 

Sign up for the BioTuesdays weekly newsletter

Get the latest news on the healthcare industry’s corporate and clinical developments, executive moves, and market updates. Every Tuesday, in your inbox.