The
outlook
is
starting
to
look
bright
for
biotech
stocks,
according
to
some.
With
markets
now
expecting
the
first
rate
cut
to
be
in
September
rather
than
June
or
July,
as
previously
thought,
biotech
stocks
could
start
to
do
well.
Earlier
this
month,
Morgan
Stanley
analysts
noted
that
biotech
stocks
outperform
in
the
months
leading
up
to
an
initial
rate
cut,
though
they
underperform
in
the
initial
period
after
rates
are
lowered.
Biotech
encompasses
many
different
areas,
but
Citi
has
identified
one
with
a
$2.9
billion
market
—
which
it
says
is
set
for
even
more
growth.
That’s
hereditary
angioedema,
a
genetic
condition
which
causes
swelling
under
the
skin,
lining
of
the
guts
and
lungs,
and
possibly
other
body
parts.
It
could
be
life-threatening,
depending
on
which
area
the
attacks
involve.
According
to
Citi,
the
market
for
it
is
set
to
grow
by
mid-single
digit
over
the
next
five
years.
“The
market
is
about
to
become
even
more
competitive
with
a
number
of
therapies
in
development,”
Citi
said
in
an
April
26
note.
The
Wall
Street
bank
named
three
companies
with
treatments
for
this
condition.
They
are
U.S.
firms
Ionis
Pharmaceuticals
and
Intellia
Therapeutics
,
as
well
as
Australia’s
CSL
.
CSL’s
treatment
Garadacimab
has
“best-in-class
efficacy”
and
has
the
potential
to
become
the
“standard
of
care”
once
launched
in
2025,
said
Citi.
“CSL
has
demonstrated
over
the
last
25
years
that
it
can
deploy
capital
at
a
high
rate
of
return,
and
has
been
able
to
consolidate
the
global
plasma
industry
to
the
point
where
the
market
structure
is
well
balanced,”
said
Citi.
It
gave
CSL
a
price
target
of
$305,
or
nearly
11%
potential
upside.
However,
Ionis’
medicine
Donidalorsen
could
offer
more
convenience
than
Garadacimab
as
it
requires
less
frequent
dosing
(every
eight
weeks)
than
Garadacimab
(monthly),
the
bank
noted.
“Considering
current
valuation
and
overall
pipeline
potential,
the
risk/reward
profile
of
the
shares
appears
positively
skewed,”
Citi
said
of
Ionis.
It
gave
Ionis
a
buy
rating
and
a
price
target
of
$60,
implying
about
44%
upside.
As
for
Intellia,
Citi
said
its
gene
editing
platform,
dubbed
“CRISPR/Cas9,”
is
“truly
innovative”
and
could
“eventually
be
a
transformational
modality
that
could
benefit
numerous
diseases
and
indications.”
It
gave
Intellia
a
price
target
of
$31,
or
49%
potential
upside.
