Oppenheimer starts Spruce Biosciences with "outperform" rating on rare disease strength

Oppenheimer initiates coverage on Spruce Biosciences SPRB.O with "outperform" rating and $283 PT

PT implies 241.7% upside to stock's last close

Brokerage expects U.S. accelerated approval next year for SPRB's experimental drug tralesinidase alfa (TA-ERT) to treat Sanfilippo type B syndrome, a terminal, ultra-rare neurodegenerative disorder with no approved treatments

Oppenheimer pegs initial global sales opportunity at more than $130 million for TA-ERT, which it views as a first-in-class, disease-modifying enzyme replacement therapy

Says it views BioMarin BMRN.O as logical acquirer of SPRB or TA-ERT as it will fit inside BMRN's portfolio "like a hand in a warm glove"

TA-ERT is natural commercial add-on for BMRN's Brineura, prescribed for CLN2 disease, with minimal incremental infrastructure, brokerage says

As of last close, SPRB stock up ~163% YTD