BTIG analyst Julian Harrison maintained a Buy rating on Rezolute yesterday and set a price target of $17.00.
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Julian Harrison has given his Buy rating due to a combination of factors surrounding Rezolute’s promising developments with their drug, ersodetug, for treating tumor hyperinsulinism (HI). The FDA’s decision to streamline the Phase 3 upLIFT study by removing the double-blind placebo-controlled portion highlights the urgent need for effective treatments in this area and is expected to enhance recruitment efforts. This adjustment is likely to expedite the drug’s potential market entry, where it could become the preferred treatment option if its safety and efficacy are confirmed in pivotal trials.
Moreover, the FDA’s acknowledgment that data from the Phase 3 sunRIZE trial in congenital HI can serve as confirmatory evidence for tumor HI is seen as a positive indication of ersodetug’s potential as a universal treatment for hyperinsulinemias. The addressable market for tumor HI in the U.S. is significant, with around 5,500 patients, and the current limited treatment options present a substantial opportunity for Rezolute. Consequently, Harrison has increased the probability of success for ersodetug in tumor HI from 55% to 70%, which has led to a raised price target from $15 to $17.