FREQ - Frequency climbs 16% as Baird initiates at Outperform ahead of readout for lead asset

• Frequency Therapeutics ( NASDAQ: FREQ ) added ~16% Wednesday after Baird initiated coverage on the clinical-stage biotech with an Outperform recommendation noting an upcoming mid-stage readout for its lead asset FX-322.
• The experimental small molecule drug is currently undergoing a Phase 2b trial called FX-322-208 for acquired sensorineural hearing loss, with results expected in 1Q 2023.
• The analyst Jack Allen issuing a $10 price target on the stock, argued that while past data for FX-322 appeared to be mixed, the management has taken multiple initiatives, including a "thoughtful" study design to generate a positive readout for the candidate.
• Citing pre-clinical data, Allen also indicates a favorable view of the company's prospects in multiple sclerosis (MS).
• As the company looks to advance an MS candidate toward IND-enabling studies, the analyst argued that this narrative has yet to "gain additional traction with investors."
• In October, Frequency ( FREQ ) announced it met the enrollment target for the FX-322-208 study.

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