BofA initiates Reneo Pharmaceuticals with 'buy' on 'sustained strength'

Onkure Therapeutics

03/07/2023 14:28

** BofA Global Research starts coverage of Reneo
Pharmaceuticals  RPHM.O  with "buy" as it believes the stock
offers "sustained strength"
    ** The broker says the muscle-disease-focused biotech has
"blockbuster" potential, supported by good pricing and limited
competition, with a road to profitability as early as 2026
    ** "Lead asset mavodelpar's upside has been overlooked by
the Street ahead of its pivotal Phase 2 readout, potentially
leading to a first approval between 2024 and 2025 in primary
mitochondrial myopathy (PMM)," it says
    ** Safety concerns represent the biggest overhang to the
bull thesis after toxicities derailed other members of the
mavodelpar's class, according to BofA
    ** Brokerage notes that Beyond PMM, mavodelpar has shown
positive signs of clinical efficacy/tolerability in LC-FAOD,
which could pave the way to approval as early as 2026
    ** Of six analysts that cover Reneo Pharmaceuticals, all
rate the stock "strong buy" or "buy"

 (Reporting by Matteo Allievi)
 ((Matteo.allievi@thomsonreuters.com))