DNLI - Denali upgraded to buy at BTIG on platform to deliver therapies across blood-brain barrier

• BTIG has upgraded Denali Therapeutics to buy from neutral after the biotech showed that a second candidate was able to cross the blood-brain barrier in an early-stage study.
• The firm has a $38 price target (~31% upside based on Tuesday's close).
• Shares are up ~8% in Wednesday afternoon trading.
• On Tuesday, Denali ( NASDAQ: DNLI ) said that interim results from Part A of a phase 1/2 study evaluating TAK-594/DNL593 (PTV:PGRN) in healthy subjects showed that progranulin (PGRN) levels measured in cerebrospinal fluid increased in a dose-dependent manner compared to baseline and placebo, consistent with brain delivery of DNL593 .
• "The DNLI program has some potential advantages including the TV-mediated uptake of PGRN once inside the CNS and the idea that the sortilin receptor isn't blocked as it is in the Alector approach," Analyst Thomas Shrader said referring to competitor Alector's ( ALEC ) work on progranulin.
• Shrader added that the results de-risk the company's transport vehicle platform, adding he now sees a probability of success for DNL310 of 75%, up from 60%. The candidate is in late-stage development for Hunter Syndrome.
• Read why Seeking Alpha contributor Terry Chrisomalis sees Denali ( DNLI ) as a strong buy.

For further details see: