Promising RGX-202 Trial Results Justify Buy Rating for RegenXBio Amid Market Skepticism

Leerink Partners analyst Mani Foroohar has maintained their bullish stance on RGNX stock, giving a Buy rating on June 6.

Mani Foroohar has given his Buy rating due to a combination of factors related to the promising data from RegenXBio’s RGX-202 trial for Duchenne muscular dystrophy. The updated results from the Phase 1/2 AFFINITY DUCHENNE trial demonstrated notable improvements in functional assessments, such as the North Star Ambulatory Assessment and timed function tests, which exceeded external natural history controls. These improvements suggest a meaningful clinical benefit, with RGX-202 showing better performance compared to a competitor’s treatment.
Furthermore, the trial’s microdystrophin data aligns with previous findings, reinforcing the potential efficacy of the treatment. The safety profile remains favorable, with no serious adverse events reported. Despite some market skepticism due to the small sample size and concerns about data variability, Foroohar believes that the aggregated data over time supports the potential for regulatory filing and approval, thus justifying a Buy rating for the stock.

Foroohar covers the Healthcare sector, focusing on stocks such as RegenXBio, CureVac, and Lexeo Therapeutics, Inc.. According to TipRanks, Foroohar has an average return of -10.6% and a 40.88% success rate on recommended stocks.

In another report released on June 6, H.C. Wainwright also reiterated a Buy rating on the stock with a $34.00 price target.