BMO starts coverage on Avidity with 'outperform', says first-in-disease therapies in sight

BMO Capital starts coverage on drug developer Avidity Biosciences RNA.O with "outperform" rating and $72 PT, representing 143.4% upside to stock's last close

Co's pipeline programs, including Del-desiran and Del-brax, have shown "acceptable safety and strong/sustained efficacy" in clinical trials, with Del-desiran potentially being "first-in-disease DM1 therapy in 2027" and Del-brax possibly "first-in-disease FSHD therapy", brokerage says

DM1 and FSHD are debilitating neuromuscular disorders that cause muscle weakness

Brokerage notes DMI affects around 30,000 to 40,000 patients in U.S. who have no treatment option, "leading to early death (~50yo) primarily due to respiratory/cardiac failure"

Estimates peak risk-unadjusted worldwide sales of ~$4.3 bln for Del-desiran and ~$3.2 bln for Del-brax by 2035

Brokerage says markets for DM1 and FSHD "large enough to accommodate multiple players"

RNA gained 217% in 2024