Buy Rating Upheld for Fulcrum Therapeutics Amid Sanofi Partnership and Upcoming Trial Catalysts

In a report released today, Dae Gon Ha from Stifel Nicolaus maintained a Buy rating on Fulcrum Therapeutics (FULC – Research Report), with a price target of $22.00.

Dae Gon Ha has given his Buy rating due to a combination of factors that suggest a promising future for Fulcrum Therapeutics. The partnership with Sanofi (SNY) for the ex-US commercialization rights to Fulcrum’s lead drug candidate, losmapimod, is a significant endorsement of the drug’s market potential. This collaboration not only provides a substantial upfront payment but also includes milestone payments and royalties that indicate considerable upside potential. Moreover, SNY’s commitment to cover half of the global development costs and all additional ex-US costs represents a substantial de-risking of the investment. Ha believes that this partnership, with SNY’s rare disease expertise and extensive global presence, will substantially aid in the drug’s commercialization, should it receive approval.
Additionally, the upcoming Phase 3 REACH trial data for losmapimod in treating facioscapulohumeral muscular dystrophy (FSHD) is highly anticipated and could be a pivotal catalyst for the company’s valuation. Despite the current market’s lukewarm response to the SNY deal, which Ha considers unjustified, the positive execution on pociredir for sickle cell disease (SCD) and the potential for favorable updates before the year’s end contribute to the optimistic outlook. Ha’s analysis suggests that the market may be underestimating Fulcrum’s potential, especially given the possibility for M&A activity, which has been observed in similar scenarios within the industry. The increased target price to $22 further reflects confidence in Fulcrum’s strategic positioning and potential growth.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

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.