Chardan's Top Pick For 2018: Gene Therapy Firm Uniqure

Uniqure NV (NASDAQ: QURE) struck all-time highs last week and continued to linger near its peak value. One analyst projects 61-percent upside and considers the equity a top pick in 2018. 

The Rating

Chardan analyst Gbola Amusa maintained a Buy rating on uniQure and increased the price target from $37.50 to $50.

The Thesis

Amusa considers the year’s second half “ideal” for uniQure for 10 reasons.

• Upcoming catalysts include second-half data from AMT-126 in a congestive heart failure study and submission of an investigational new drug application for AMT-130 in Huntington’s. Results on AMT-061 for hemophilia B are expected by the end of the year.
• Post-proof-of-concept AAV-based gene therapy companies generally boast market caps between $1 billion and $8.4 billion, and uniQure’s $1.1-billion market cap is at the low end of the range.
• Amusa predicted BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) will bid to acquire or partner with uniQure this year.
• Bristol-Myers Squibb Co (NYSE: BMY) could deepen its partnership, increase its stake in uniQure and provide long-term upside from progress in AMT-126.
• Amusa expects uniQure, with a scaled manufacturing process, to beat Spark Therapeutics Inc (NASDAQ: ONCE) to market with its AAV-based hemophilia B gene therapy.
• Hemophilia B presents a market opportunity north of $15 billion, and Amusa anticipates a path to reimbursement for AMT-061.
• AMT-061 is seen to address patients with AAV5 antibodies, which would support best-in-class rankings.
• AMT-061 has FDA breakthrough and EMA PRIME designations that expedite development.
• The firm’s AAV-based Huntington’s product may prove superior to antisense oligonucleotides.
• Management could monetize its intellectual property in manufacturing and generate royalties from peers.
• The firm can stunt competitors with intellectual property in FIX-Padua.

Price Action

At the time of publication Monday, uniQure shares were trading down 0.13 percent at $31.03. 

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