ISIS Pharmaceuticals (ISIS) Buy Rating Reiterated at Laidlaw

Laidlaw reiterated a Buy rating on ISIS Pharmaceuticals (NASDAQ: ISIS) with a price target of $60. Earlier ISIS announced the initiation of a pivotal Phase 3 study evaluating ISIS-SMNRx in approximately 120 non-ambulatory children with spinal muscular atrophy (SMA).

Analyst Yale Jen said, "Although it is anticipated, the commencement of the ISIS SMNRx in children SMA Phase III study remains an important milestone for advancing the value of this asset. Along with the infant SMA, we estimate the total annual peak sales of ISIS-SMNRx could exceed $2 billion and we estimate ISIS to receive a royalty payment of a percentage rate in the higher mid teens. We estimate the top-line results from the infant ENDEAR study could be available in 2016; with CHERISH results in 2017. Both are likely major catalysts for ISIS shares. We also view the two additional Phase II studies to be started in 1H15, if clinically successful, could enable ISIS-SMNRx to be used more broadly in SMA patients, possibly as a standard of care."

"We reiterate our Buy rating and $60 target price to reflect our bullish view on ISIS shares based on the progress in ISIS’s pipeline, especially ISIS-APOCIIIRx, ISIS-SMNRx and ISIS-TTRRx. Our valuation is based on our DCF and probability-adjusted-NPV-driven, sum-of-the-parts analyses," he added.

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

Shares of ISIS Pharmaceuticals closed at $52.42 yesterday.

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