BioArctic (Buy, TP: SEK270.00) - Negative CHMP opinion fully reflected in the share price
Q2 earnings included slightly higher R&D costs than we forecast. While royalties from Leqembi sales were known, the positive sales trend was overshadowed by the negative opinion for lecanemab from the CHMP earlier in Q3. We have removed our European estimates (until we know the outcome of the re-examination). However, we believe the share price reaction is overdone and reiterate our BUY, but have cut our target price to SEK270 (350).BioArctic is a research-based biopharma company which is engaged in developing new innovative disease modifying treatments based in antibodies (immunotheraphy) for neurodegenerative disease (i.e. diseases where the nervous system degenerates) such as Alzheimer's disease and Parkinson's disease and a treatment concept for complete spinal cord injuries (i.e. an injury where the spinal cord is completely broken). Co.'s operations are focused on research and development of new drugs for diseases and conditions with great medical need.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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