In a report released yesterday, Corinne Jenkins from Goldman Sachs initiated coverage a Hold rating on Fulcrum Therapeutics (FULC – Research Report), with a price target of $5.00.
Corinne Jenkins has given her Hold rating to Fulcrum Therapeutics due to a combination of factors. Based on her evaluation, she sees a clear growth path for the company with its losmapimod drug, which shows promise in treating facioscapulohumeral muscular dystrophy. She expects the company to reach peak sales of $1.1B in this area. However, she also points out that the absence of patent protection may limit the durability of these revenues to seven years, which is the duration of orphan drug exclusivity.
Moreover, Jenkins also notes that the company is continuing to investigate the therapeutic benefits of FTX-6058 in treating sickle cell disease, following the lifting of a clinical hold. While the FDA’s decision is encouraging, she sees several challenges ahead. These include a higher threshold for FTX-6058 to demonstrate clinical effect due to lower baseline HbF levels, an increasingly competitive market with the emergence of potentially curative gene therapies, and a smaller addressable market in the severe patient population that is currently indicated. Consequently, these factors contribute to her decision to rate FULC as Hold.
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Fulcrum Therapeutics (FULC) Company Description:
Fulcrum Therapeutics, Inc. is a clinical-stage biopharmaceutical company. It develops new medicines and focuses on unlocking gene control mechanisms to develop small molecule therapies. Its product candidate includes Losmapimod and FTX-HbF. The company was founded by Michael R. Green, Danny Reinberg, Rudolf Jaenisch, Jeannie T. Lee, and Bradley E. Bernstein on August 18, 2015 and is headquartered in Cambridge, MA.
Read More on FULC:
- Fulcrum Therapeutics to Participate at the Cantor Fitzgerald Global Healthcare Conference
- Fulcrum Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
- Oppenheimer sees potential ‘major under-the-radar upside’ for Fulcrum
- Fulcrum Therapeutics completes enrollment in Phase 3 trial of losmapimod in FSHD
- Fulcrum Therapeutics upgraded to Buy from Neutral at H.C. Wainwright
