Leerink Partners analyst Joseph Schwartz has reiterated their neutral stance on DSGN stock, giving a Hold rating on May 1.
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Joseph Schwartz has given his Hold rating due to a combination of factors related to Design Therapeutics’ recent developments and future prospects. The company has announced promising data from their Phase 1 study of DT-168, a treatment aimed at addressing Fuchs endothelial corneal dystrophy (FECD). This study demonstrated that the eye drops were well-tolerated with no serious adverse events, which supports the initiation of a Phase 2 study. However, the timeline for this next phase is set for the second half of 2025, with data expected in 2026, indicating a long road ahead before potential market approval.
Additionally, while the Phase 1 results are encouraging, the ultimate success of DT-168 will depend on further clinical validation, particularly in demonstrating its efficacy in patients with FECD. The company’s strategy to use RNA biomarkers as a proof-of-concept measurement is innovative, but it remains to be seen how this will translate into clinical outcomes. Given these uncertainties and the extended timeline for development, Schwartz’s Hold rating reflects a cautious optimism, acknowledging the potential while also recognizing the risks and time required for further progress.
In another report released on May 1, RBC Capital also maintained a Hold rating on the stock with a $5.00 price target.
DSGN’s price has also changed slightly for the past six months – from $5.200 to $4.710, which is a -9.42% drop .