Leerink upgrades Agios to Outperform after 51% pullback

As previously reported, Leerink upgraded Agios Pharmaceuticals (AGIO) to Outperform from Market Perform with a price target of $34, down from $40, after the company reported mixed topline results for the Phase 3 RISE UP trial evaluating mitapivat in sickle-cell disease and the stock was down about 51%. With shares approaching cash at about $22 per share, the firm sees no value attributed to mitapivat in approved indication pyruvate kinase deficiency, whicih it values at about $6 per share in its model, or optionality on SCD or MDS. The firm sees the thalassemia PDUFA date on December 7 as a near-term catalyst not reflected at current levels that could confirm the value of the opportunity, the analyst tells investors.