HCW starts Gemini Therapeutics at buy; PT $20

Gemini Therapeutics

H.C. Wainwright launched coverage of Gemini Therapeutics (NASDAQ:GMTX) with a “buy” rating and $20 price target. The stock closed at $2.43 on Dec. 14.

Gemini is developing precision medicines for the treatment of genetically defined age-related macular degeneration (AMD) patients. The platform is focused on lead recombinant protein candidate, GEM103. 

Analyst Matthew Caufield writes that the strengths of Gemini’s platform are defined by the expected Phase 2a readout in the near-term for GEM103, which “can serve as a platform catalyst” for the treatment of geographic atrophy secondary to dry AMD (GA dAMD). 

“We are specifically looking to safety and biomarker data, based on the observed GEM103 dose response, biological activity, and safety profile,” Mr Caufield said. “We believe GEM103 can demonstrate safety and biomarker data supportive of complement regulation for late-stage progress.”

In addition, he said prospective investor aversion to recent pipeline consolidation, and being newer to Gemini’s special purpose acquisition company story presents opportunity. 

Mr. Caufield said that with the stock trading below cash and the October 2021 corporate restructuring, investors remain reserved on the name. “We believe this proactively streamlines the clinical focus, turning the page for GEM103 pivotal development in dAMD,” he added. 

“With GEM103 acting as a recombinant protein designed to impact complement factor H (CFH) regulation in both dAMD and wAMD patients, we believe targeting CFH functional insufficiency in AMD represents a validated therapeutic approach,” Mr. Caufield said.