FULC - Avidity Biosciences: Muscular Dystrophy Breakthrough Propels To A 'Buy' Upgrade

2024-06-14 14:38:51 ET

Summary

• Avidity Biosciences, Inc.'s FORTITUDE trial of AOC 1020 in treating FSHD showed promising reductions in DUX4 gene expression and improvements in muscle function.
• The trial reported favorable safety and tolerability, with no serious adverse events or discontinuations among participants.
• Avidity plans to raise $400 million through a stock offering, extending its cash runway into 2028, but long-term financial risks remain high.
• My recommendation is to buy Avidity stock, which is suited for the high-risk portion of a diversified portfolio.

Avidity's FORTITUDE Trial: Promising Outcomes for FSHD Therapy

My last review of Avidity Biosciences, Inc. ( RNA ), a developer of RNA-based therapies, covered their AOC (Antibody Oligonucleotide Conjugates) programs, focusing on various muscular dystrophies. My focus was on AOC 1001 at that time, which revealed directional improvements in multiple functional assessments in patients with myotonic dystrophy type 1 , or DM1. I ended up recommending " Hold ," noting:

"The potential of their AOC platform is evident, but with pending milestones such as the dose-escalation safety and efficacy data, it's prudent for investors to wait for more definitive evidence before revising their investment strategy."

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