Taysha draws bullish view at Piper Sandler on lead asset

Taysha Gene Therapies (NASDAQ:TSHA) traded higher on Tuesday after Piper Sandler launched its coverage with an Overweight recommendation, citing the potential of biotech’s lead asset, TSHA-102, targeted at the rare neurodevelopmental disorder Rett syndrome.

Issuing a $9 price target on the stock, Piper argued that TSHA-102, a gene transfer therapy, represents a more than $900M revenue opportunity as Rett syndrome remains largely an unmet medical need despite the availability of an FDA-approved treatment.

In March, the U.S. approved Acadia Pharmaceuticals (ACAD) Rett syndrome therapy Daybue for those two years and older.

Despite its “moderate efficacy” and uncertain gastrointestinal tolerability profile, Daybue, also known as trofinetide, is on track to generate roughly 500M in FY24 sales, “demonstrating to us the profound unmet need in Rett syndrome,” analyst Christopher Raymond added.

With Taysha’s (TSHA) market capitalization at $500M, “we believe the stock has only just started to reflect this potential,” Raymond wrote, noting the company’s upcoming Phase 1/2 readouts for TSHA-102 in the months ahead.