AVRO - AVROBIO initiated buy at Needham; estimates more than $2 billion peak sales from pipeline

AVROBIO ([[AVRO]] +8.6%) has risen sharply today as Needham initiated the coverage of the stock with a buy rating. The price target of $28.00 per share implies ~247.8% upside from the last close.Analyst Gil Blum estimates over $2B peak sales from its clinical programs targeting lysosomal storage disorders ((LSDs)) namely Fabry, Gaucher type 1, and Cystinosis.Bilum also highlights how lentivirus ((LV)) based gene therapy candidates being studied by the company for LCDs are different from the standard of care: enzyme replacement therapy ((ERT)) and emerging adeno-associated virus ((AAV)) based gene therapy.The prospects of LV-based gene therapy in LSD’s with CNS effects, promising results from early-stage trials, and AVRO’s early commercial focus with the utilization of plato platform, “set the company apart from its peers,” the analyst wroteAfter full approval for competing therapy, Fabrazyme, “AVROBIO can no longer pursue an accelerated approval pathway” for its Fabry disease candidate, AVR-RD-01 with the current

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AVROBIO initiated buy at Needham; estimates more than $2 billion peak sales from pipeline