Lexeo Therapeutics ‘ inventory may practically double as its gene therapies advance by means of its pipeline, in line with JPMorgan. The financial institution initiated protection of the clinical-stage biotech with an chubby score, setting a December 2024 value goal of $20. That suggests a possible upside of practically 82% from the inventory’s Monday closing value of $11. Shares have been pretty rangebound because the firm’s preliminary public providing at $11 a share earlier in November. LXEO ALL mountain Lexeo Therapeutics all-time inventory chart Analyst Tessa Romero cited Lexeo Therapeutics’ lead cardiac remedy, LX2006, as a catalyst for the inventory. The gene remedy is delivered to physique tissues by means of an adeno-associated virus vector and it targets a uncommon genetic coronary heart dysfunction referred to as Friedreich’s ataxia cardiomyopathy. Knowledge from the gene remedy’s part 1/2 trial is anticipated by the center of 2024. “We see Lexeo’s platform of gene remedy candidates providing a differentiated strategy to focus on genetically pushed illnesses (i.e., deal with the underlying genetic driver) for which there stay restricted therapy choices and substantial unmet wants,” Romero wrote. She added that about 5,000 sufferers are presently impaired by this illness within the U.S. Inside sufferers affected by Friedreich’s ataxia cardiomyopathy, heart problems is the reason for demise in about 70% of all circumstances. However no therapy choices have but been launched to deal with this related cardiomyopathy. “To this finish, LX2006 is designed to advertise the expression of the protein frataxin by delivering a purposeful frataxin (FXN) gene to revive regular mitochondrial operate and power manufacturing in myocardial cells,” Romero added. “Therefore, we see the potential for LX2006 to affect/restore cardiac operate and reverse illness abnormalities.” The agency can also be evaluating an identical sort of gene remedy, LX2020, to deal with circumstances of PKP2-ACM, one other sort of inherited coronary heart illness. Within the U.S. alone, there are about 60,000 sufferers with this illness. Enrollment of a low-dose cohort for LX2020 is anticipated to begin within the first half of subsequent 12 months, with preliminary part 1/2 knowledge launched someday within the latter half, Romero wrote. Round that point, the agency may even be ready for interim knowledge from a part 1/2 trial for LX1001, which targets sufferers with Alzheimer’s illness. The analyst stated the chance for LX1001 has not been baked into her value goal, that means the success of the gene remedy may present additional upside for the inventory. “We presently worth the potential of cardiovascular candidates — LX2006 and LX2020 — at various levels of considerable threat adjustment given their early phases (20% and 10%, respectively),” she wrote. “Web-net, with continued de-risking of the candidates/strategy anticipated over the subsequent ~6-12 months, and with its market cap within the ~$250-300M vary, we see the potential for upside to LXEO’s present valuation.” — CNBC’s Michael Bloom contributed to this report.