Chardan Capital affirms its Buy rating and $40 price target on uniQure N.V. (Nasdaq: QURE) following the company's Q3 report and update issued on Monday.

Analyst Gbola Amusa says investors should buy on post-Q3 weakness. The analyst noted the following key points from the company's quarterly conference call:

• AMT-060 (hemophilia B): In early January 2016 (previously due by end-2015), uniQure will release preliminary, top-line data for 2 patients who have completed at least 12 weeks of treatment, with full results from the first cohort of 5 patients at a scientific conference in 1H2016.
  • Our take: A delay of a few weeks is immaterial to our thesis, or any reasonably-modeled hemophilia B view, and we continue to expect a signal of factor IX expression at 12 weeks in each of the 2 patients shown in early 2016.
  • Another take: We believe Dimension Therapeutics (Neutral, PT$13) traded up 9% yesterday, as some in the market wondered why uniQure is presenting data for only 2 patients of 5 in the interim data. Our catalyst sheets for months have consistently showed uniQure's expectations of "2-3 patients" of data out of the 10 in the trial, and we note this approach enhances the ability of QURE to present the data at a major scientific conference. As such, we continue to prefer uniQure over Dimension Therapeutics.
• AMT-110 (Sanfilippo B): uniQure is still working to complete in-licensing of the recent positive phase I/II data from Institut Pasteur and will follow the patients through the end of the 30-month study, which is expected around year-end 2016.
  • Our take: We continue to believe long-term durability of AMT-110's benefits in a deadly disease like Sanfilippo B would represent a landmark result in gene therapy and in lysosomal storage diseases, as patients who should have been heading towards a vegetative state by the age of 7 or so (and death in their teens) showed age-dependent and almost normal brain development without atrophy at sequential MRIs.
• Glybera US: As above, the company has decided not to pursue U.S. regulatory approval of Glybera in lipoprotein lipase deficiency and as a consequence reported a one-time, non-cash impairment of €11.6 million, which drove an EPS of -€1.08, versus our expectation of -€0.60.
  • Our take: Prior to this news, we modeled €0 million in 2025E revenues for Glybera US, meaning no impact to our sales model and no impact to our valuation.

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