Ionis Pharmaceuticals (NASDAQ:IONS) – There’s an “outsized” risk-reward ratio for this biotech, says Morgan Stanley, predicting stocks could rise more than 30%

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  • Morgan Stanley assumed coverage on Ionis Pharmaceuticals Inc. IONS with an overweight rating (previously underweight) and a price target of $57 from $30 to capture the optionality in these short-term readings.
  • The analyst added estimates for Ionis’ near-term pipeline products (donidalorsen, fesomersen, IONIS-AGT-LRx, IONIS-FBLRx and cimdelirsen) along with associated increases in operating expenses to fund these programs.
  • Related: AstraZeneca – Ionis Eplontersen Obtains Positive Data in Rare Disease Trial.
  • The shift is due to increased confidence in the pipeline and giving more credit to mid to late stage assets as the antisense platform may finally be ready for prime time given the chemical changes, improved tissue targeting and reduced risk of adverse events.
  • “Given Spinraza’s large cash and royalty-related valuation portion, we expect an outsized risk-reward headed towards several near-term catalysts over the next 12-18 months,” the analyst wrote.
  • Price Action: IONS shares are up 6.74% at $47.26 when last checked on Friday.
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