Neurogene’s Strong Pipeline and Financial Health Prompt Buy Rating

Leerink Partners analyst Mani Foroohar has maintained their bullish stance on NGNE stock, giving a Buy rating yesterday.

Mani Foroohar has given his Buy rating due to a combination of factors including Neurogene’s promising pipeline updates and financial health. Neurogene’s recent 1Q24 earnings report demonstrated alignment with their previous guidance and showed progress in their Rett syndrome program, particularly with the Australian HREC’s approval for expansion. The anticipated interim Phase 1/2 data for their NGN-401 treatment is expected to provide further insight into the drug’s efficacy by the end of 4Q24, which could serve as a significant catalyst for the stock. Additionally, the safety data presented at ASGCT for NGN-401 indicated no signs of adverse MeCP2 overexpression, which is encouraging for the drug’s risk profile.
From a financial standpoint, Neurogene’s R&D and SG&A spending were above estimates, yet the company maintains a solid cash position projected to fund operations well into the second half of 2026. This financial stability, coupled with upcoming milestones including the completion of NGN-401 cohort 1 enrollment and interim data releases, positions Neurogene favorably in the market. Foroohar likely sees these factors, alongside the potential read-across from TSHA-102’s interim data, as indicators of a strong investment opportunity, leading to the Buy rating for Neurogene’s stock.

According to TipRanks, Foroohar is an analyst with an average return of -7.2% and a 38.11% success rate. Foroohar covers the Healthcare sector, focusing on stocks such as Mirum Pharmaceuticals, Alnylam Pharma, and RegenXBio.

In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $51.00 price target.

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Neurogene (NGNE) Company Description:

Neoleukin Therapeutics, Inc. is a biopharmaceutical company, which engages in the design of de novo protein therapeutics to address significant unmet medical needs in oncology, inflammation, and autoimmunity. Its lead product candidate, NL-201, is a combined IL-2 and IL-15 agonist designed to eliminate alpha receptor binding. The company was founded by Daniel-Adriano Silva, Carl Walkey, and Umut Ulge in December 2003 and is headquartered in Seattle, WA.