Avidity Biosciences (RNA) PT Raised to $45 at BofA Securities

BofA Securities analyst Geoff Meacham raised the price target on Avidity Biosciences (NASDAQ: RNA) to $45.00 (from $40.00) while maintaining a Buy rating.

The analyst comments "This morning, Avidity reported compelling biomarker (>50% reduction in DUX4 related gene panels) and functional strength improvement data in FSHD (a rare muscle disorder) patients treated with del-brax (previously known as AOC 1020). Notably, given the aberrant expression of DUX4 and limited follow-up at this early data readout (~4 months), improvements in muscle strength, reachable workspace, and patient / clinician- reported outcomes were upside to our expectations. Furthermore, there were no safety signals with expected AEs broadly observed in both the treatment and placebo arms. Taken together, we see potential for an accelerated approval pathway for del-brax, supported by read-through from the initial cohorts of the phase 1/2 FORTITUDE study. Next updates include dose selection in 3Q, initiation of the biomarker cohort in 2H24 for accelerated approval with muscle biopsies and 4 months of follow-up, and initiation of the functional cohort in 1H25 to bridge to full approval. With the phase 1/2 fully enrolled and a total of 39 patients on trial, we anticipate that the program could move rapidly through accelerated approval with the biomarker cohort reading out as early as 2025, well ahead of our initial expectations for timeline to commercial launch (2027). Reiterate Buy on RNA but raising the PO to $45 (from $40) after increasing the POS of del-brax."

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