LB Pharmaceuticals initiated with an Outperform at Leerink

Leerink initiated coverage of LB Pharmaceuticals (LBRX) with an Outperform rating and $34 price target LB-102 is a methylated derivative of amisulpride, which is an effective antipsychotic and approved in Europe, so the Probability of Success for this mechanism is high, the firm says. Leerink also notes that the strong effect size of 0.73 for amisulpride or 0.83 for the highest dose of LB-102 puts the agent in the tier 1 efficacy bucket for schizophrenia agents, such that the schizophrenia indication is important. The positive impact seems to be in both positive and negative symptoms of SCZ as well as cognition. There is good rationale for additional indications given its serotonergic and dopaminergic activity and amisulpride is approved for Major Depressive Disorder and dysthymia in certain European countries, the firm argues.