Applied Genetic may attract Sanofi takeover interest, says Roth Capital

Applied Genetic Technologies (AGTC) recently announced significant advancements to its proprietary AAV gene therapy manufacturing platform, which "exceeds the performance and economics of many others," Roth Capital analyst Zegbeh Jallah tells investors in a research note. Further, Investigational New Drug enabling studies for more indications beyond rare genetic retinal diseases are expected to begin during the second half of 2020 and could put Applied Genetic "into the running for M&A interest" from Sanofi (SNY), adds the analyst. Jallah believes the company's manufacturing advancements position it to potentially attract takeover or partnering interest from large pharma. The analyst keeps a Buy rating on Applied Genetic Technologies with a $25 price target. The stock is up 6% to $5.88 in afternoon trading following the analyst note.