(News Bulletin 247) – Degroof Petercam announced on Wednesday that it had initiated coverage of the GenSight Biologics stock with a buy recommendation and a target price of 8.5 euros.
The Belgian investment house says it expects European approval for Lumevoq, its gene therapy for the treatment of Leber’s hereditary optic neuropathy (LHON), in the first quarter of 2024.
According to Degroof, which claims to have “great expectations” for Lumevoq, the biotechnology company could thus post balanced accounts two years after the launch of the product, that is to say before the end of 2026.
Its analysts thus expect sales of up to 310 million euros per year for Lumevoq.
But Degroof Petercam says it sees even greater potential for GS030, the company’s second project, because of its ability to address multiple indications.
For retinopathy pigmentosa (RP) alone, its sales could reach 565 million euros, according to its calculations.
While it acknowledges that the stock has been penalized by operational problems that led to the postponement of the marketing of Lumevoq, Degroof Petercam expects these difficulties to be resolved by the third quarter, which in its view should relaunch the interest in value.
Its target price of 8.5 euros currently implies a potential appreciation of 264%.
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