Acceleron Has 2 Phase III Trials With Good Chance Of Success; BTIG Initiates Stock At Buy

Acceleron Pharma Inc (NASDAQ: XLRN) has two ongoing Phase III trials of luspatercept in lower-risk MDS and beta thalassemia, both of which have a 60 percent probability of success, BTIG’s Ling Wang said in a report. He reinitiated coverage of the company with a Buy rating and a price target of $46.

Analyst Wang believes that upside to Acceleron’s shares would be driven in the near term by updates on response duration from the two Phase II luspatercept trials as well as initial data from MDS expansion trials. Acceleron has partnered with Celgene Corporation (NASDAQ: CELG) [Rated: Buy, PT: $138] for luspatercept.

Luspatercept In MDS

Luspatercept has exhibited impressive efficacy in MDS, with durable effect in improving hemoglobin and reducing transfusion burden by 50 percent in a population without effective therapy.

Luspatercept In Beta Thalassemia

“As ~67% and 83% of the transfusion-dependent patients in the Phase II base and extension studies achieved over 33% reduction in RBC transfusion, the primary endpoint in the Phase III BELIEVE trial, we see a good chance of Phase III success,” Wang wrote.

Acceleron has a broad pipeline, including sotatercept [Phase II], dalantercept [Phase II RCC data expected in 4Q16] andAC-083 [Phase II planned for muscle-related indications].

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