Epizyme Shares Will Perform Well In Next 6 Months, Says H.C. Wainwright’s Andrew Fein

H.C. Wainwright analyst Andrew Fein was out today with some bullish comments on Epizyme (EPZM), maintaining his Buy rating with a $40 price target, which represents 39% upside to the current share price. 

Fein wrote, “This year, EPZM has thrust into the spotlight a subspecialty meeting that typically flies outside most investors’ radar. On August 12 at the ASH Lymphoma Biology meeting in Colorado Springs, the company’s CSO, Robert Copeland, will give an oral presentation titled “Activity of the EZH2 inhibitor EPZ-6438 in NHL: preclinical models and early clinical observations” (3:00pm). While there is certainly no shortage of high quality preclinical data to-date supporting the case for EZH2 inhibitors as anti-cancer agents, what makes this presentation a potential catalyst for the company is the type and depth of clinical observations that may be presented”.

The analyst added, “While the focus of biotech investors and big pharma continues to roll over from genetics into epigenetics, EZPM represents a platform play in personalized epigenetically-targeted therapies, as a ~$1B company with ~$240M cash in hand (expected to fund operations into 2016), two rolling clinical programs with data in 2H14, and a proprietary HMT pipeline partly validated by pharma partnerships. We believe that EPZM shares will perform well in next 6 months as preclinical and mechanistic updates (likely in 3Q) first grab and then focus investor attention in anticipation of value-driving clinical data (likely in 4Q) from EPZ-5676 and EPZ-6438, two small-molecule inhibitors of histone methyltransferases (HMTs), as personalized therapies in genetic subgroups of AML/ALL leukemias and NHL respectively. Near-term progress with the clinical leads may not only catalyze inflection points in the value of their respective programs, but may also serve as further validation of the HMT technology platform, leading to new indications and/or business development activity”.

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Andrew Fein currently has a one-year average return of 5.6% and an 56% success rate. Fein has a 2.9% average return when recommending EPZM, and is ranked #1433 out of 3215 analysts.


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