Goldman Sachs Reinstates 4D Molecular Therapeutics (FDMT) at Buy, 'Platform value to inflect via 2024 catalysts'

Goldman Sachs analyst Salveen Richter reinstates coverage on 4D Molecular Therapeutics (NASDAQ: FDMT) with a Buy rating and a price target of $81.00.

The analyst comments "Given positive Ph2 intravitreal gene therapy 4D-150 data in wet age-related macular degeneration (wAMD), and the planned Ph3 initiation in 1Q25, we move from Not Rated on FDMT (our approach for early-stage biotech companies yet to pass Ph2), to Buy with a 12-month PT of $81. It hit the efficacy benchmarks in severe, high-need wAMD while demonstrating durability and favorable tolerability/safety (the historical challenge with retinal gene therapies). Notwithstanding the move post the news (~+85%), we believe current value is primarily reflecting wAMD on a risk-adjusted basis, noting a large opportunity ($2.4bn GSe peak sales assuming ~16% cumulative penetration) and overlooks the readthrough to FDMT's directed evolution-based platform across three disease verticals (ophthalmology, pulmonology and cardiology). We expect shares to trade higher on 2024 catalysts: (1) initial 24-week 4D-150 data in standard-need wAMD and diabetic macular edema in 2H; (2) FDA feedback for aerosol 4D-710 in modulator-ineligible/intolerant cystic fibrosis (additional Ph1 data in mid-24) and modulator combinations in 1Q24; and (3) NHP data submission in 2Q24 to lift the clinical hold on 4D-310 in Fabry disease and pave the way to Ph3. We model for ~$7.5bn in peak sales across six programs in 2032 (4D-175 in geographic atrophy represents upside)."

For an analyst ratings summary and ratings history on 4D Molecular Therapeutics click here. For more ratings news on 4D Molecular Therapeutics click here.

Shares of 4D Molecular Therapeutics closed at $33.21 yesterday.

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