Jefferies cuts Assembly Biosciences' PT on low expectations for hepatitis D pill

Assembly Biosciences

01/04/2022 12:28

** Jefferies cuts price target on drug developer  ASMB.O  to
$2 from $2.50, citing low investor expectations for co's new
hepatitis D pill (HDV) which is currently in pre-clinical stage
    ** Says decision to develop the drug makes "logical sense"
as an oral inhibitor could also have some efficacy against
hepatitis B virus (HBV) as both viruses rely on same entry
mechanism 
    ** Adds that HDV is not key for the stock now, believes ASMB
should focus resources on functional cure data in 2023 for HBV
    ** HBV has been a challenging indication with long timelines
and multiple drug disappointments, driving investor fatigue -
brokerage  
    ** Jefferies says a novel regimen for HBV could emerge in 3
to 5 years with better functional cure, helping keep the virus
at bay even without continuing treatment
    ** Says novel regimen for HBV likely to include core
inhibitors of the virus, which is ASMB's expertise
    ** 3 out of 5 brokerages covering stock rate it "buy" or
higher, 2 rate it "hold"; their median PT is $12
    ** Up to Thursday's close, ASMB down ~12% YTD 

 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))