BMO Capital analyst Kostas Biliouris maintained a Hold rating on Ionis Pharmaceuticals today and set a price target of $40.00.
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Kostas Biliouris’s rating is based on the potential outcomes of Ionis Pharmaceuticals’ drug Olezarsen, which is currently undergoing a Phase III trial. The primary focus is on whether Olezarsen can achieve a statistically significant reduction in pancreatitis, a secondary endpoint, in addition to its expected success in lowering triglycerides. The simulations conducted suggest a 30-35% probability of achieving this pancreatitis benefit, which introduces a level of uncertainty in the drug’s overall success.
Given this uncertainty, Biliouris anticipates a potential downside of 10-20% in Ionis’s stock if Olezarsen fails to meet the pancreatitis endpoint, contrasted with a 10-15% upside if it succeeds. The outcome of this trial is crucial as it could significantly influence the drug’s market competitiveness against alternatives like Plozasiran. Thus, the Hold rating reflects a balanced view of the potential risks and rewards associated with Ionis Pharmaceuticals’ current pipeline developments.
In another report released on July 15, Morgan Stanley also maintained a Hold rating on the stock with a $55.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of IONS in relation to earlier this year.