Agios Pharmaceuticals: We Expect Multiple Catalysts To Support The Stock, Says MLV


In a research report issued today, MLV analyst Arlinda Lee initiated coverage on Agios Pharmaceuticals (NASDAQ:AGIO) with a Buy rating and a $123 price target, which represents a potential upside of 19% from where the stock is currently trading.

Lee wrote, “We anticipate rapid product development with first product approval from wholly owned AG-348 in pyruvate kinase deficiency (PKD, worth $87e/share) and approvals for partnered product candidates AG-221 and AG-120 for IDH2 and IDH1 mutant acute myelogenous leukemia (AML) in 2020 (worth $8e/share) and ($26e/share), respectively. Though we expect multiple catalysts in the near and mid-term to support the stock, we believe the long-term value proposition for AGIO’s integrated approach, that can continue to produce novel product candidates for many years to come, is underappreciated.”

The analyst added, “Our Buy rating is based on our view that Agios has a differentiated platform based on integrating metabolomics and genomics that has already generated 3 product candidates since its founding in 2007 and that we believe will continue to drive an innovative and productive drug pipeline. We assign a 45-60% probability that each of its three first-inclass therapeutic drug candidates (AG-221, AG-120, and AG-348) will show benefit in the clinic and attain rapid regulatory approval in 2018-2020.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Arlinda Lee has a total average return of 0% and a 55.6% success rate. Lee is ranked #2441 out of 3395 analysts.

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