UPDATE: H.C. Wainwright Starts Longboard Pharmaceuticals Inc (LBPH) at Buy

H.C. Wainwright analyst Patrick Trucchio initiates coverage on Longboard Pharmaceuticals Inc (NASDAQ: LBPH) with a Buy rating and a price target of $25.00.

The analyst comments "Emerging neuroscience leader poised to shine. Longboard, based in La Jolla, California, is a clinical-stage biopharmaceutical company focused on developing novel compounds for neurological diseases. Longboard's lead compound, LP352, an oral, centrally acting, serotonin, 5-hydroxytryptamine 2c receptor subtype (5-HT2c) superagonist, is currently being evaluated in the Phase 1b/2a program (PACIFIC) for the treatment of seizures associated with developmental and epileptic encephalopathies (DEEs); study completion is expected in 2H23. DEEs are a group of severe early-childhood onset epilepsies characterized by refractory seizures and developmental delay and/or regression and include Dravet syndrome (DS), Lennox-Gastaut syndrome (LGS), tuberous sclerosis complex (TSC), and CDKL5 deficiency disorder (CDD), among others. We believe the increased specificity of LP352 for the 5-HT2c receptor relative to other subtypes such as 5-HT2a and 5-HT2b, which have been associated with dose-limiting side effects, could confer an advantage to LP352 relative to FINTEPLA (fenfluramine), a serotonergic compound approved in DS and LGS and in Phase 3 development for CDD. FINTEPLA is projected to achieve revenues of $671M by 2028 (Visible Alpha) even as the FDA label contains a black box warning regarding the potential for valvular heart disease and pulmonary arterial hypertension (PAH) that is believed to be associated with 5-HT2b agonism. Thus, we believe that if LP352 is proven to be an improved form of FINTEPLA and potentially expand to additional DEEs, it would have blockbuster drug ($1B-plus annual revenues) potential. For these reasons, together with early stage pipeline assets that could drive long-term upside and cash and investments of $107M that is above the current equity valuation, we find LBPH shares highly attractive at current levels; hence, we initiate with a Buy and $25 price target."

For an analyst ratings summary and ratings history on Longboard Pharmaceuticals Inc click here. For more ratings news on Longboard Pharmaceuticals Inc click here.

Shares of Longboard Pharmaceuticals Inc closed at $4.80 yesterday.

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