TD Cowen starts coverage of Lenz Therapeutics, sees derisked commercial story

Brokerage TD Cowen starts coverage on drug developer Lenz Therapeutics LENZ.O with "buy" rating and $60 PT, as it expects "high consumer satisfaction" with co's once-daily eye drop, LNZ100

Says LNZ100 has demonstrated "best-in-class efficacy and clean safety" in treating presbyopia, a condition that affects 128 mln US adults, causing an inability to focus on near objects

Estimates over $1 bln in peak sales for LNZ100, representing just "2% of presbyopia market"

Says unlike competitor AbbVie's ABBV.N Vuity which has "poor tolerability/safety, with short duration of effect," LNZ100's aceclidine is "derisked for real-world safety"

Brokerage says investors should "buy the derisked commercial story, as the launch should impress" and potentially "surprise to the upside"

The US drug regulator is expected to decide on approval for LNZ100 in early August

LENZ gained 131% in 2024