Alec Stranahan, an analyst from Bank of America Securities, reiterated the Buy rating on Agios Pharma. The associated price target was lowered to $41.00.
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Alec Stranahan has given his Buy rating due to a combination of factors including Agios’ continued opportunity in sickle cell disease despite new competitive data from Novo Nordisk’s etavopivat. While the HIBISCUS topline results suggest etavopivat may have an edge on vaso-occlusive crisis reduction, he still sees a viable regulatory and commercial path for mitapivat, supported by its strong hemoglobin response and ongoing engagement with the FDA on an accelerated approval strategy.
Stranahan incorporates the heightened regulatory risk by trimming his probability of success for mitapivat to 50% from 60% and lowering his price objective modestly to $41, yet maintains a Buy as he believes the risk/reward remains attractive at current levels. He points to potential optimization of the confirmatory trial design, including more clinically meaningful pain or enriched patient endpoints, as catalysts that could unlock value, while Agios’ solid balance sheet and long-term earnings recovery also underpin his constructive stance on the shares.
In another report released yesterday, H.C. Wainwright also assigned a Buy rating to the stock with a $50.00 price target.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AGIO in relation to earlier this year.