Cantor starts Longboard Pharma at OW; PT $32

Cantor Fitzgerald launched coverage of Longboard Pharmaceuticals (NASDAQ:LBPH) with an “overweight” rating and $32 price target. The stock closed at $16.67 on April 5.

Longboard was spun out of Arena Pharmaceuticals, which has an expertise in G-coupled protein receptor science. Specifically, Longboard is focused on novel medicines within the neuro space with a focus on rare diseases.

“We believe that Longboard’s ability to leverage Arena’s scientific expertise is a significant positive for the probability of success for its own platform,” writes analyst Alethia Young.

She said Longboard is developing next-generation assets that are designed to improve on similar assets already developed but with great selectivity. “As a result, we think that Longboard could have best-in-class assets using known targets in areas where high unmet need still exists,” she added.

Over the next 12-to-15 months, “we think that lead asset, LP352, should be significantly de-risked” with clinical data in various epilepsies, such as Dravet and Lennox-Gastault. Ms. Young expects results from Longboard’s multiple ascending dose study in the second half of 2021 and “think it will then start a study in patients.”

In the same timeframe, she said the company also will be moving two other assets into the clinic: LP143 (CB2) and LP659 (S1P1,5).