Rezolute initiated with a Buy at Guggenheim on potential in CHI

As previously reported, Guggenheim initiated coverage of Rezolute with a Buy rating and $11 price target. The firm’s view is based on expectations for a resolution of the partial clinical hold imposed by the FDA on RZ358 for the treatment of congenital hyperinsulinism, or CHI, coming in the second half, stating that regulatory alignment on the sunRIZE Phase 3 trial could open up the trial to the commercially relevant population in the U.S. and re-rate the stock by 100%. Conversations with CHI experts and the firm’s analysis of Phase 2 data drives the firm’s “sanguine thesis on a positive readout” from the sunRIZE trial, which would position RZ358 as a $1B global product for infants and children diagnosed with CHI, the analyst tells investors.