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Spruce Biosciences: Hold Rating Amid Strategic Pipeline Replenishment and Market Uncertainties

Leerink Partners analyst Joseph Schwartz has maintained their neutral stance on SPRB stock, giving a Hold rating yesterday.

Joseph Schwartz has given his Hold rating due to a combination of factors regarding Spruce Biosciences. The company has recently licensed tralesinidase alfa, an enzyme replacement therapy for Sanfilippo Syndrome Type B, from BioMarin. This move is seen as a strategic replenishment of their pipeline following setbacks with their previous candidate, tildacerfont. While there is cautious optimism about the potential of tralesinidase alfa, there are uncertainties about the market opportunity for MPS IIIB.
Additionally, although the FDA appears more open to regulatory flexibility in this area, and the therapy has shown promising results in normalizing certain biomarkers, the full market potential and regulatory pathway remain to be fully realized. The program’s eligibility for a Priority Review Voucher could provide significant non-dilutive capital, but the company’s financial runway is limited. These factors contribute to the decision to maintain a Hold rating as the situation develops.

In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $0.50 price target.

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