Longboard Pharmaceuticals initiated with a Buy at Truist

Truist analyst Joon Lee initiated coverage of Longboard Pharmaceuticals with a Buy rating and $60 price target. Lead drug bexicaserin, or bexi, is competitive to current market leader Fintepla in epilepsy and based on bexi’s superior safety and comparable efficacy to Fintepla, the firm thinks bexi could not only displace Fintepla but also further expand a market that remains under-penetrated at about 5%, the analyst tells investors. Bexi is due to start Phase 3 testing by year-end 2024, while Longboard’s second asset, LP659, is an S1P modulator with greater specificity to currently marketed S1P modulators whose Phase 1 data looks “promising with potential for greatest therapeutic window,” the analyst added.