Buy Rating Affirmed for Lexeo Therapeutics Amid Strategic Cornell Collaboration and Promising Therapy Advancements

Leerink Partners analyst Mani Foroohar maintained a Buy rating on Lexeo Therapeutics, Inc. (LXEO – Research Report) on April 23 and set a price target of $19.00.

Mani Foroohar has given his Buy rating due to a combination of factors surrounding Lexeo Therapeutics, Inc. One key aspect is the strategic in-licensing agreement with Cornell University, which secures intellectual property rights and data from an ongoing Phase 1A trial for a promising therapy targeting Friedreich’s ataxia cardiomyopathy. This collaboration not only enhances the breadth of data available for analysis but also solidifies Lexeo’s position by addressing potential intellectual property or data access concerns well in advance of the interim data release expected in mid-2024.
Furthermore, the financial arrangement with Cornell, including license, data transfer fees, and subsequent milestone payments, is seen as reasonable by the analyst, suggesting a well-managed financial strategy by Lexeo. Importantly, the growing dataset from the combined studies is anticipated to strengthen regulatory discussions and inform crucial decisions regarding the progression of their SUNRISE-FA trial. Foroohar’s confidence in the company’s approach and the potential of the therapy under investigation is reflected in the maintenance of a $19 price target, signifying a positive outlook for Lexeo’s stock.

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Lexeo Therapeutics, Inc. (LXEO) Company Description:

Lexeo Therapeutics, Inc. operates as a clinical stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich’s ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated; and LX2022, a gene therapy candidate for the treatment of HCM caused by TNNI3 mutations. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.