Truist Securities initiated coverage on Longboard Pharmaceuticals, Inc. (NASDAQ:LBPH), citing it as a CNS-focused biotech with high-value epilepsy assets.
The company plans to advance its lead drug bexicaserin (LP352), into the Phase 3 program later this year.
The FDA has granted Breakthrough Therapy designation for bexicaserin for seizures associated with Developmental and Epileptic Encephalopathies (DEEs) for patients two years of age and older.
Earlier this year, Longboard reported topline data from the PACIFIC Phase 1b/2a trial evaluating bexicaserin in participants with DEEs.
Recently, the company revealed interim results from its ongoing 52-week open-label extension of the PACIFIC Study evaluating bexicaserin (LP352) in participants ages 12-65 with DEEs.
Bexicaserin achieved an overall median seizure reduction of 57.7% in countable motor seizures over an approximate 9-month treatment period.
Longboard is also evaluating LP659, which is in development for the potential treatment of rare neuroinflammatory conditions.
Truist writes bexicaserin is competitive to current market leader UCB SA (OTC:UCBJY) (OTC:UCBJF) Fintepla (fenfluramine) in epilepsy.
The analyst initiates with a Buy rating and a price target of $60.
Fintepla is on track for approximately $1 billion in estimated sales by 2027 per UCB Pharma.
The analyst notes that, unlike fenfluramine, bexicaserin does not bind to the 5HT2B receptor, which is linked to the heart-related side effects seen with Fintepla.
"Based on bexicaserin's superior safety and comparable efficacy to Fintepla, we think bexicaserin could not only displace Fintepla but also further expand the market, which remains under-penetrated at around 5%," Truist analyst writes.
Price Action: LBPH stock is up 0.20% at $34.58 at last check Tuesday.
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