BMO starts coverage on Avidity with 'outperform', says first-in-disease therapies in sight

Avidity Biosciences

12/03/2025 12:40

** BMO Capital starts coverage on drug developer Avidity Biosciences RNA.O with "outperform" rating and $72 PT, representing 143.4% upside to stock's last close

** Co's pipeline programs, including Del-desiran and Del-brax, have shown "acceptable safety and strong/sustained efficacy" in clinical trials, with Del-desiran potentially being "first-in-disease DM1 therapy in 2027" and Del-brax possibly "first-in-disease FSHD therapy", brokerage says

** DM1 and FSHD are debilitating neuromuscular disorders that cause muscle weakness

** Brokerage notes DMI affects around 30,000 to 40,000 patients in U.S. who have no treatment option, "leading to early death (~50yo) primarily due to respiratory/cardiac failure"

** Estimates peak risk-unadjusted worldwide sales of ~$4.3 bln for Del-desiran and ~$3.2 bln for Del-brax by 2035

** Brokerage says markets for DM1 and FSHD "large enough to accommodate multiple players"

** RNA gained 217% in 2024

 (Reporting by Kamal Choudhury in Bengaluru)

 ((Kamal.Choudhury@thomsonreuters.com;))