Solid Biosciences’ SGT-003 Gains Favor Amid Competitor Setbacks, Justifying Buy Rating

Arthur He CFA, an analyst from H.C. Wainwright, maintained the Buy rating on Solid Biosciences (SLDB – Research Report). The associated price target remains the same with $20.00.

Arthur He CFA has given his Buy rating due to a combination of factors that highlight the potential of Solid Biosciences’ SGT-003 therapy. The recent safety concerns surrounding a competitor’s product, Elevidys, have underscored the superior safety profile of SGT-003. Unlike Elevidys, which has been associated with acute liver failure in patients, SGT-003 has shown no such adverse effects, with liver enzyme levels remaining stable in treated patients.
Additionally, the setbacks faced by Elevidys could expedite the development and enrollment process for SGT-003, as caregivers and physicians may opt for this safer alternative. This shift in preference could lead to a broader commercial opportunity for Solid Biosciences, especially if Elevidys faces regulatory restrictions or loses market authorization. The valuation of Solid Biosciences is supported by a risk-adjusted net present value analysis, leading to a 12-month price target of $20 per share, which further justifies the Buy rating.