Canaccord Genuity Sticks to Their Buy Rating for Alder Biopharmaceuticals

By Ryan Adsit

Canaccord Genuity analyst Sumant Kulkarni maintained a Buy rating on Alder Biopharmaceuticals (NASDAQ: ALDR) on June 11 and set a price target of $20. The company’s shares opened today at $16.50.

Kulkarni observed:

“We would BUY ALDR on this AGN-related dip Earlier today (6/11), Allergan (AGN, not covered) released top-line Phase 2b/3 data on atogepant, which is an oral calcitonin gene-related peptide (CGRP) receptor antagonist that is in development for the prevention of migraine. These early top-line data bode well for AGN and BHVN’s oral migraine-prevention products; see here for our note on BHVN ($36.11 | BUY, $40 price target). In short, however, we view ALDR’s intravenous (IV) eptinezumab as sufficiently differentiated vs. other injectables that are all subcutaneous, and orals that are much farther behind and do not have as much safety/efficacy data as injectables currently. As such, we believe eptinezumab has a significant role to play in migraine prevention especially for patients with chronic migraine, which is defined as >15 episodes per month for clinical trial purposes.”

According to TipRanks.com, Kulkarni is a 3-star analyst with an average return of 2.3% and a 46.8% success rate. Kulkarni covers the Healthcare sector, focusing on stocks such as Biohaven Pharmaceutical Holding Co Ltd, Intra-Cellular Therapies, and Voyager Therapeutics Inc.

Currently, the analyst consensus on Alder Biopharmaceuticals is Strong Buy and the average price target is $22.83, representing a 38.4% upside.

In a report issued on May 31, RBC Capital also maintained a Buy rating on the stock with a $24 price target.

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Based on Alder Biopharmaceuticals’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $87.03 million. In comparison, last year the company had a GAAP net loss of $100 million.

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Alder Biopharmaceuticals, Inc. operates as a clinical-stage biopharmaceutical company, which discovers, develops, and commercializes various therapeutic antibodies. Its product portfolio includes ALD1910, a preclinical product candidate also in development as a migraine prevention therapy.