Stifel starts Mineralys at buy; PT $45


Stifel launched coverage of Mineralys Therapeutics (NASDAQ:MLYS) with a “buy” rating and 12-month price target of $45. The stock closed at $18.96 on March 7.

Mineralys’ lorundrostat is targeting hyperaldosteronism, a key contributing factor in uncontrolled or resistant hypertension.

Analyst Annabel Samimy writes that while targeting aldosterone to reduce hypertension has been well-understood biologically, prior approaches have not been selective and resulted in too many adverse events to treat the condition adequately.

Aldosterone synthase inhibitors have proven to be a more optimal approach, and lorundrostat has “promise to be a best-in-class product with the highest selectivity for aldosterone, an optimal half-life, and a biological mechanism that has been validated both by its own clinical studies and by those of competitors,” she added.

Ms. Samimy said the global hypertension market remains uncontrolled, and “we believe there is meaningful utility for a new class of drugs targeting an underlying factor of disease.”

In addition, she said a benchmark for valuation has been established by the takeout of its closest competitor for $1.8-billion, “leaving significant room for upside as Mineralys reaches each clinical and regulatory catalyst.”