Canaccord Chimes In On Agios Pharmaceuticals Inc (AGIO) Following ASH Event


In a research report published Monday, Canaccord analyst John Newman reiterated a Buy rating on shares of Agios Pharmaceuticals Inc (NASDAQ:AGIO), with a price target of $90, after the drug maker hosted an investor event at ASH to highlight data from multiple company-sponsored trials (3 oral and 4 poster presentations).

The investor event featured Dr. Rachael Grace, who reviewed updated AG-348 data from the Phase II DrivePK study in pyruvate kinase deficiency (PK-deficiency) presented on Sunday, and Dr. Eytan Stein who provided an overview of the current treatment landscape in AML and a teaser on AG-120 genetic analysis data in r/r IDH1-mutant AML. Agios also presented updated findings from AG-519 in healthy volunteers and reiterated that Celgene-partnered enasidenib’s (AG-221) NDA is on track for year end submission.

Newman wrote, “AG-348 continued to show higher increases in Hb for less severe mutations, suggesting a potential genetic predictor for success. Similar to prior data, the mean maximum Hb increase was 3.6 g/dL for patients who had a Hb increase >1.0 g/dL. Baseline Hb levels were ~9.2 overall, suggesting a relatively severe patient population. Importantly, patients with Hb increases > 1.0 g/dL maintained response out to ~25-40 weeks for 50 mg bid, and 30-45 weeks for 300 mg bid, with responses ongoing.

“AG-519 showed one case of cholestatic hepatitis at 300mg in a healthy patient study, which is new, and could shift attention back to AG-348 for Phase 3. Importantly, no other AG-519 showed any liver function test (LFT) elevations or abnormalities, and we await details as to whether the cholestatic hepatitis resolves, and how quickly,” the analyst continued.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of -13.5% and a 33% success rate. Newman has a 3.3% average return when recommending AGIO, and is ranked #4139 out of 4240 analysts.

Out of the 11 analysts polled by TipRanks, 6 rate Agios Pharmaceuticals stock a Buy, while 5 rate the stock a Hold. With a return potential of 32.5%, the stock’s consensus target price stands at $65.80.

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