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Fly News Breaks for January 8, 2020
SNY, HRTX, PRNB, MNTA
Jan 8, 2020 | 10:55 EDT
Stifel analyst Derek Archila named Momenta Pharmaceuticals (MNTA) and Principia Biopharma (PRNB) his top 2020 picks in the SMID cap Biotech space. The analyst also added Momenta to his firm's Select List while removing Heron Therapeutics (HRTX). Momenta's anti-FcRn candidate, nipocalimab, is mechanistically de-risked and has a high probability of success in demonstrating positive proof-of-concept in its Phase 2 myasthenia gravis study in mid-2020, Archila tells investors in a research note. Further, he believes the "broad potential" of the program is not completely factored into the stock, which could lead to "meaningful upside." Archila thinks Principia's first half of 2020 update on whether it decides to opt in to more favorable economics on PRN2246, a BTK inhibitor being developed in multiple sclerosis by partner Sanofi (SNY), could be a "significant value creating event." Share upside of 50%-75% from current levels is possible depending on the scenario, says the analyst. He keeps a Buy rating on Heron despite removing the shares from the Select List. Archila expects HTX-011 to get approved in March 2020 and believes it is a launch investors should own.