Longboard Pharmaceuticals Elevates Price Target After Investor Day

Author: Hannah Lewis Updated: 09-18-2024 12:39 PM

Longboard Pharmaceuticals Target Update After Investor Day

Recently, H.C. Wainwright raised its price target for Longboard Pharmaceuticals Inc (NASDAQ: LBPH) to $80 from $60 while maintaining a Buy rating. This adjustment comes on the heels of the company's Investor & Analyst Day, where it shared vital insights into its treatment program for developmental and epileptic encephalopathies (DEEs).

Focus on Bexicaserin and Phase 3 DEE Program

During the Investor Day event, Longboard spotlighted the drug bexicaserin (LP352). This oral medication is designed as a highly selective superagonist for the 5-HT2C receptor subtype. Longboard outlined details of its Phase 3 DEE program, which comprises several studies, including DEEp OCEAN, DEEp SEA, and DEEp OLE. Importantly, the program has broadened to encompass a wider array of DEEs than earlier projections suggested.

Strategic Shift and Expanded Scope

This broader scope in Longboard's DEE program represents a significant strategic pivot from earlier plans that aimed at targeting specific indications. This modification came after fruitful discussions with the FDA at the end of Phase 2 and the granting of Breakthrough Therapy Designation (BTD). This designation is anticipated to streamline the development and review of the drug, fast-tracking its market entry.

Positive Outlook Acknowledged by Analysts

Thanks to the extensive scope and deeper understanding of DEEs, combined with favorable regulatory developments, H.C. Wainwright established a strong rationale for its updated price target. The firm reaffirmed its optimistic stance on Longboard’s potential and reasserted the Buy rating, portraying confidence in the company’s advancements in DEE therapies.

Other Analyst Opinions on Longboard

In other recent updates, Baird shared its continued support by maintaining an Outperform rating alongside a price target set at $60.00, following Longboard's thorough plans for its Phase 3 clinical trials for bexicaserin, a promising candidate for DEEs. These trials are slated to commence around the end of September, with top-line results expected by late 2026.

New Coverage and Development Plans

Truist Securities has also recently started covering Longboard, assigning it a Buy rating and a price target of $60. Their analyses suggest that bexicaserin could surpass existing treatments for epilepsy. Beyond bexicaserin, Longboard is also working on LP659, an asset aimed at CNS, inflammation, and immunity.

Market Reactions and Expectations

Following the FDA's BTD for bexicaserin, Baird responded by raising Longboard’s price target from $36 to $60. Similarly, Citi adjusted its target from $40 to $45 while maintaining a Buy stance, especially after the FDA approved a Phase 3 study for the candidate.

Future Initiatives and Clinical Trials

Looking ahead, Longboard is poised to initiate a Phase 3 program by the end of 2024 and anticipates sharing Phase 1 data for LP659 in the second quarter of 2024. These endeavors signal a robust commitment to meeting critical unmet needs within the epilepsy treatment sector.

Investing Insights on Longboard Pharmaceuticals

As Longboard Pharmaceuticals Inc (NASDAQ: LBPH) continues its journey with DEE treatments, investors may want to keep track of real-time insights. Currently, the company boasts a market capitalization of $1.07 billion and has exhibited considerable market fluctuations, with a year-to-date return of 357.38%. This growth highlights a dynamic perception surrounding Longboard's future prospects.

Financial Health Considerations

Investors should note that Longboard currently holds more cash than debt. This financial positioning could alleviate some concerns and provide the necessary flexibility for ongoing clinical initiatives. However, recent analyses indicate downward revisions in earnings expectations by four analysts, hinting at some reservations about near-term profitability. Despite this, Longboard's stock continues to demonstrate resilience, particularly over the past three months.

Frequently Asked Questions

What is the new price target for Longboard Pharmaceuticals?

The new price target for Longboard Pharmaceuticals is set at $80, raised from the previous $60.

What drug is Longboard focusing on for DEEs treatment?

Longboard is focusing on bexicaserin (LP352) as a treatment for developmental and epileptic encephalopathies.

What has been the market reaction to Longboard's recent news?

Longboard has experienced significant volatility, with a year-to-date total return of 357.38% reflecting strong investor interest.

Are there other drugs in development by Longboard Pharmaceuticals?

Yes, alongside bexicaserin, Longboard is developing LP659, which focuses on CNS, inflammation, and immunity indications.

What does the Breakthrough Therapy Designation mean for Longboard?

This designation can expedite the development and review of bexicaserin, potentially speeding up its path to market.

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