Guggenheim starts Eliem Therapeutics with 'buy' on lead asset's strong potential

Climb Bio

07/09/2021 12:48

** Brokerage Guggemheim starts coverage on drug developer
 ELYM.O  with "buy" rating; says co's lead asset, ETX-A55, has
blockbuster potential across several depressive disorders based
on its differentiated effect vs. competitor compounds targeting
the same pathway
    ** Sets PT at $32, a premium of 16.1% to stock's last close
    ** ETX-155, currently in development for depressive
disorders and epilepsy, targets Gamma-aminobutyric acid (GABA),
a neurotransmitter that sends chemical messages through the
brain and the nervous system
    ** Other compounds targeting the GABA system, including Sage
Therapeutics's  SAGE.O  zuranolone and Praxis Precision
Medicines'  PRAX.O  PRAX-114, have shown promising results in
clinical trials
    ** Brokerage believes ETX-155's mechanism of action has been
derisked in depressive and epilepsy indications by data from
competitors like SAGE and PRAX
    ** Adds that current data suggests that ETX-155 may offer
more optimal dosing regimen, robust acute efficacy and long-term
durability relative to competitors
    ** Anticipates peak U.S. sales of >$1.1 bln for ETX-155 in
depressive disorders
    ** ELYM is focused on development of therapies for chronic
pain, psychiatry, epilepsy and other disorders affecting the
peripheral and central nervous system
    ** ELYM up ~73% since Aug. 10 IPO

 (Reporting by Mrinalika Roy in Bengaluru)
 ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 8325;))