Credit Suisse has initiated coverage on Verve Therapeutics IncVERV with a Neutral rating and a $48 target price.
Its lead assets are VERVE-101 for heterozygous familial hypercholesterolemia (HeFH) and atherosclerotic cardiovascular disease (ASCVD) and VERVE-201 for homozygous familial hypercholesterolemia (HoFH).
The analyst is cautious about VERVE-101, citing a distinct advantage of being a one-time PCSK9 therapy that could free patients from a lifetime of monthly injections. However, patients are still required to take daily oral statins.
Credit Suisse sees high market barriers related to commercial payers and high out-of-pocket expenses for Medicare patients.
However, the analyst believes payer challenges may not be fully appreciated until product approval/launch.
The opinion is based on numerically worse LDL-C reduction data, elevated liver enzymes, lack of outcomes evidence at launch, and reimbursement challenges.
Additionally, Leqvio has not demonstrated much commercial success despite less frequent dosing every six months.
The market could be further crowded with the potential launch of Merck & Co Inc’sMRK oral PCSK9 (MK-0616) and biosimilars.
The analyst’s Neutral rating is driven by VERV’s ability to compete against well-established, wellentrenched, and deeperpocketed large pharma/biotech companies.
Price Action: VERV shares are up 1.80% at $36.80 on the last check Thursday.
