SVB Leerink launched coverage of Adverum Biotechnologies (NASDAQ:ADVM) with an “outperform” rating and $17 price target. The stock closed at $10.33 on March 13.
Adverum’s lead asset, ADVM-022, is in a Phase 1 trial as a one-time intravitreal therapy for treatment of wet age-related macular degeneration (wet AMD).
Despite safe and effective standard of care anti-VEGF treatments from Eylea, Lucentis and Avastin, high injection burden remains an unmet need as many patients require frequent injections of up to once every four weeks, writes analyst Dr. Mani Foroohar.
“ADVM-022 is positioned to reduce this treatment burden, recently demonstrating positive data from a Phase 1 trial where patients have effectively managed their disease without the need for anti-VEGF rescue injections,” he added.
Dr. Foroohar said patients with diabetic retinopathy also require a substantial injection burden with anti-VEGF therapy and “we see this as a rational expansion indication” for ADVM-022. Adverum plans to file an IND for ADVM-022 in diabetic retinopathy in the second quarter of 2020 and begin enrolling patients in a clinical trial in the second half.
“With a robust balance sheet, a differentiated administration profile for lead asset ADVM-022, and upside optionality (not included in our model) for use beyond wet AMD, we see an attractive risk/reward profile in Adverum shares at the current valuation,” he said.
