Oppenheimer Initiates a Buy Rating on Epizyme (EPZM)

By Jason Carr

Oppenheimer analyst Leland Gershell initiated coverage with a Buy rating on Epizyme (EPZMResearch Report) today and set a price target of $18. The company’s shares closed yesterday at $13.76.

Gershell commented:

“We are assuming coverage of EPZM with an Outperform rating and a 12- to 18- month price target of $18. Impressive efficacy in r/r follicular lymphoma demonstrated by lead candidate tazemetostat should enable this drug to become the 3rd line treatment of choice in the ~20% w/EZH2-activating mutations as well as drive its use within the wild-type population. An NDA submission for all-comers is expected in 4Q19, and content overlap with next quarter’s initial filing (for epithelioid sarcoma) should facilitate review. We believe these indications support $700M+ sales potential in the US, within which EPZM plans to commercialize on its own. Cash adequate to fund operations through 2Q20. We expect shares to outperform as tazemetostat progresses through development and approaches commercialization.”

According to TipRanks.com, Gershell is a 2-star analyst with an average return of 1.6% and a 36.8% success rate. Gershell covers the Healthcare sector, focusing on stocks such as Evofem Biosciences Inc, AzurRx BioPharma Inc, and Urogen Pharma Ltd.

Currently, the analyst consensus on Epizyme is a Strong Buy with an average price target of $19.57, a 42.2% upside from current levels. In a report released yesterday, Cowen & Co. also assigned a Buy rating to the stock with a $18 price target.

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Based on Epizyme’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $22.95 million. In comparison, last year the company had a GAAP net loss of $36.17 million.

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Develops therapeutics for the treatment of patients with genetically defined cancers