Kostas Biliouris, an analyst from BMO Capital, has initiated a new Buy rating on Avidity Biosciences (RNA).
Kostas Biliouris has given his Buy rating due to a combination of factors related to Avidity Biosciences’ promising pipeline and strategic positioning in the neuromuscular disorder treatment market. Avidity Biosciences is leveraging TfR1-targeted siRNA delivery, which is a novel approach for treating conditions like Myotonic Dystrophy Type 1 (DM1) and Facioscapulohumeral Muscular Dystrophy (FSHD). The company’s lead candidate, Del-desiran, could be the first approved therapy for DM1, a condition affecting a significant patient population in the U.S. with no current treatment options. This potential first-in-disease opportunity is a key driver of Avidity’s valuation.
Avidity’s clinical trials have shown strong and consistent efficacy with an acceptable safety profile for both Del-desiran and Del-brax, the latter being a potential first-in-disease therapy for FSHD. The anticipated regulatory decisions, particularly the FDA’s decision on the FSHD pathway in 2025, are significant catalysts for the company. Additionally, the potential commercialization of Del-zota for Duchenne Muscular Dystrophy in 2026 could establish Avidity’s commercial capabilities, supporting future launches. These factors collectively underpin Biliouris’s confidence in Avidity’s potential market success and justify the Buy rating.
Biliouris covers the Healthcare sector, focusing on stocks such as BioMarin Pharmaceutical, Sarepta Therapeutics, and Beam Therapeutics. According to TipRanks, Biliouris has an average return of -12.6% and a 29.47% success rate on recommended stocks.
In another report released on March 7, Bank of America Securities also maintained a Buy rating on the stock with a $48.00 price target.