Audentes Therapeutics' Strong Pipeline Merits An Outperform Rating From Cowen And Company

Cowen and Company started coverage on Audentes Therapeutics Inc (NASDAQ: BOLD) with an Outperform rating, citing the strong pipeline and the bold steps taken entering into rare disease gene therapy.

Analyst Ritu Baral stated the rating was backed by pipeline assets like AT132, AT342 and AT982 and their respective values. The analyst expressed confidence in the company's move to get approval for every gene therapy candidate.

The brokerage liked the way Audentes focuses on rare monegenic diseases, since it provides tremendous opportunities in the absence of "straightforward disease-relevant biomarkers." The lead analyst thinks that the company's investment in the process of manufacturing does not pose a big risk, citing the commercial-regulatory part of the business.

Related Link: Audentes Therapeutics Initiated Overweight At Wedbush

"We think BOLD's value is driven by lead candidate AT132 for XLMTM, further bolstered by AT342 for Crigler Najjar syndrome and AT982 for Pompe disease. We expect quarterly IND submissions beginning 3Q16 for all 3 program with multiple data readouts in 2H17," the analyst said.

The brokerage expects Audentes to generate worldwide sales of $150 million from AT342, which demonstrates promise and efficacy in mouse models. Similarly, the analyst estimates $500 million worldwide sales from AT982 based on treatment cost of $1.5 million.

On the possible downside risks, Cowen cited any delay in getting clinical development and failure of AT132 could invite negative investor sentiment.

At time of writing, Audentes was up 1.55 percent on the day, trading at $14.93.