Disc Medicine initiated with an Outperform at Scotiabank

Scotiabank initiated coverage of Disc Medicine with an Outperform rating and $62 price target Bitopertin is showing promise as a convenient disease-modifying treatment for erythropoietic protoporphyria and X-linked protoporphyria, and the firm favors Disc Medicine’s de-risked approach to developing therapies for hematological diseases, which selects targets among well-understood pathways involved in erythropoiesis, the analyst tells investors in a research note. The firm believes lead asset bitopertin will capture meaningful market share given its convenience as an oral therapy and ability to target the underlying cause of disease, a clear advantage over current treatment options, and with limited competition in development, there is likely a clear path for bitopertin to become standard of care for EPs if it yields a positive Phase 3 study, Scotiabank contends. The firm forecasts the launch of bitopertin in EPP/XLP in 2027 with 2031 sales of $572M.