Morgan Stanley bullish on Generate Biomedicines, cites strength of lead asthma drug

Morgan Stanley initiates drug developer Generate Biomedicines GENB.O with an "overweight" rating as research quiet period ends

Company secured a valuation of nearly $1.91 bln at open after its debut on the Nasdaq late last month

Brokerage cites, "we see GENB's lead asset, GB-0895, as having best-in-class potential vs. blockbuster generating commercial benchmarks"

GB-0895 is GENB's lead product to treat severe asthma which is being tested in a late-stage trial

"We believe GB-0895 has credible best-in-class potential in severe asthma by improving on a validated mechanism rather than reinventing the biology"- MS

Goldman Sachs, Morgan Stanley, Piper Sandler, Guggenheim Securities and Cantor were the underwriters for GENB's offering

As of last close, stock down 24% since its debut on Feb. 27