Axovant Gene Therapies Ltd (AXGT)

[Ramiel]

Piper Jaffray analyst, Charles Duncan, reiterated his Overweight rating on shares of Axovant Sciences (NYSE: AXON) after shares traded off when competitor, Lundbeck, announced that its first Phase III data with idalopirdine in Alzheimer’s missed the primary endpoint.

Idalopirdine shares the putative 5-HT6 antagonist MOA with Axovant’s RVT-101 but the analyst doesn't believe this result has predictive value for the ongoing '101 Phase III. Therefore he continues to see potential for this target in AD.

Key differences between the two candidates and Phase III programs:

-idalopirdine faced challenges on liver toxicity and potency

-this drug profile and protocol prioritized speed over thoroughness

In contrast, the analyst sees RVT-101 as the best-in-class 5-HT6 candidate and thinks its MINDSET trial is well designed to show clinical benefit. In addition, Axovant has already made significant progress on enrollment and in advance of 2017 results.

No change to the price target of $32.