Decibel Therapeutics: SVB Leerink starts with 'outperform' on pipeline potential

Decibel Therapeutics

09/03/2021 12:08

** SVB Leerink starts coverage of gene therapy developer
 DBTX.O  with "outperform" rating and PT of $26
    ** Brokerage's PT on stock represents an upside of ~96% to
DBTX's closing price on Monday
    ** DBTX is a biotech firm that develops treatments to
restore and improve hearing and balance
    ** Valuation based on co's promising lead gene therapy,
DB-OTO, for treatment of Otoferlin-mediated hearing loss set to
enter clinical trials in 2022 
    ** Brokerage expects approval in 2025, with peak
risk-adjusted revenue of $195 mln in 2030
    ** DBTX's competitor Akouos Inc  AKUS.O  is developing a
similar therapy which uses specialized delivery device for
intracochlear delivery 
    ** Brokerage says DBTX's therapy has common surgical
approach which may make training and uptake less burdensome upon
commercialization
    ** Other treatments in pipeline including DB-020, DBTX's
most advanced therapy currently in early stage trial, could also
provide substantial upside opportunity moving forward - SVB
Leerink
    ** As of last close, co's shares have fallen ~26% since
market debut on Feb. 12

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