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- Prime Therapeutics (NASDAQ:PRME) skyrocketed ~35% Monday after JonesTrading issued a bullish report on the company due to increased interest in gene editing in the wake of Eli Lilly’s (NYSE:LLY) deal last month to pay up to $1.3B for Verve Therapeutics (NASDAQ:VERV).
- Analyst Soumit Roy noted that a large price/valuation discrepancy, insider share purchases since mid-May, and short interest is driving momentum for the stock. The short interest is currently 35% of float.
- While Roy sees Prime as a “prime candidate” for acquisition, “it is unlikely to happen without clinical data from their Wilson Disease or AATD programs, which we estimate will be in 2027.”
- Roy rates Prime a buy with a $5 price target (~61% upside based on July 3 close).
- In September 2024, Prime signed a deal with Bristol Myers Squibb (NYSE:BMY) worth $110M in upfront payments and equity investments for the development and commercialization of several Prime edited ex vivo T-cell therapies.
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