Roth Capital Starts Applied Genetic Tech (AGTC) at Buy; Catalysts in 2015 Add Appeal

Roth Capital starts coverage on Applied Genetic Technologies Corporation (Nasdaq: AGTC) at Buy with a price target of $25.

Analyst Joseph Pantginis commented, AGTC has a differentiated and proprietary AAV platform and is looking to address orphan ophthalmological indications, which could garner premium pricing as well as other orphan indications such as Alpha 1 antitrypsin deficiency for lung disease. We expect important data catalysts in 2015 and believe this is an opportune entry point for investors for this recent IPO.

The company uses its adeno-like virus (AAV) vector platform to deliver healthy genes into the retina and other tissues to treat various forms of inherited blindness and other genetic diseases. We believe the company’s business model is a simple one as it looks to replace something that is missing, similar to protein replacement therapy, but in a much more efficient and long-term manner. While protein replacement therapy requires chronic dosing, a single AAV injection could provide long term protein expression and “rescue” for the underlying disorder, while also garnering the premium pricing associated with other orphan drugs. As the company progressed through the early stages of development, it looked at a laundry list of orphan diseases. There are ~180 genes associated with inherited retinal diseases and the underlying goal of the company’s approach is to look for clinical improvement not just slowing of deterioration rates, the analyst noted.

For an analyst ratings summary and ratings history on Applied Genetic Technologies Corp. click here. For more ratings news on Applied Genetic Technologies Corp. click here.

Shares of Applied Genetic Technologies Corp. closed at $14.08 yesterday.

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