Tuesday, Longboard Pharmaceuticals Inc LBPH released topline data from the PACIFIC Phase 1b/2a study evaluating bexicaserin (LP352) for seizures associated with a broad range of Developmental and Epileptic Encephalopathies (DEEs).
Cantor Fitzgerald writes that the data are among the best reported for seizure meds, with a median 53% reduction in seizures across subtypes (~33% placebo adjusted).
Even though there were just four patients with Dravet Syndrome in the trial, the median seizure reduction achieved with bexicaserin was a remarkable 72%. This level of reduction is comparable to what UCB SA’s UCBJY UCBJF Fintepla has demonstrated, a bar Cantor initially believed bexicaserin couldn’t reach.
Cantor says “in light of these excellent results” that the price target for LBPH stock has been raised from $35 to $55, with an overweight rating.
Cantor notes that the increased price target might still prove highly conservative since it hasn’t yet reflected the broad “DEE” opportunity in the model.
The analyst awaits additional clarity on that path before incorporating.
The analyst lowered the discount rate from 14% to 12% and factored in less dilutive equity raises, given the stock action.
Cantor analyst notes LBPH remains a top pick – with even higher conviction now that the program is substantially derisked. The analyst sees peak bexicaserin sales of over $1 billion and potentially over $2 billion.
Price Action: LBPH shares are up 222.60% at $19.45 on the last check Tuesday.