Craig-Hallum bullish on Rezolute, initiates with a Buy

As previously reported, Craig-Hallum analyst Albert Lowe initiated coverage of Rezolute with a Buy rating and $14 price target. The firm views lead asset RZ358 as a novel therapy with a significant opportunity in congenital hyperinsulinism, a rare pediatric disease. Phase IIb data showed robust efficacy with favorable tolerability that gives confidence to a positive outcome in the Phase III sunRIZE study, which is ongoing in ex-U.S. geographies. In Craig-Hallum’s view, RZ358’s risk/benefit profile supports lifting the partial clinical hold to allow enrollment in the U.S., and notwithstanding, it believes the Rezolute’s shares are undervalued considering RZ358’s ex-U.S. CHI opportunity along with WW tumor hyperinsulinism.