Akari started at buy by Blair, seeing niche opportunity
Analyst Tim Lugo sees Akari’s leading product, Coversin, finding a niche in the market for non-Solaris-responding patients whose genetic mutations prevent activity of Solaris. If that sounds huge, it is. A niche market would be a major benefit for Akari which is why William Blair is uber bullish on the company in a research note issues Thursday morning.
To wit, the analyst says “With C5 inhibition being a validated method of treatment in the rare life-threatening rare diseases of paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS), we see the upcoming Phase II data set as a major value-creating event for the company and are launching coverage with an Outperform rating. With similar stage peer group companies trading at enterprise values of several-fold higher than Akari, if the company is indeed the next entrant to the complement market, we project a significant revenue opportunity given the size of the complement market and the differentiated subcutaneous administration of Coversin versus the current standard of care.”
Lugo expects Akari to post FY 2017 EPS loss of $2.93 and FY 2018 EPS loss of $3.43.