Regenxbio (NASDAQ:RGNX) is an analyst favorite. In the past year, upgrades to “Buy” and “Outperform” have spurred on investors. In the biotechnology sector, the potential for price movement is big and currently, all eyes are on RGNX stock.
So should you be keeping yours here too?
RGNX Stock – All Eyes Are On It
The company’s portfolio is on the verge of potentially significant revenue as gene therapies that use its technology are close to FDA approval. This, of course, would mean big business for Regenxbio.
It’s “adeno-associated viral (AAV) vectors” are used by drugmakers to “deliver payloads to cells”. And now, the first gene therapy to use its AAVs is on the cusp of FDA approval this month.
As such, things have gotten very interesting for RGNX stock. Currently, shares are selling for $42 and are down over 6% on the day. But with a price target of $94 set by Raymond James, and $76-$84 by BofA/Merrill Lynch, now could offer investors an undervalued opportunity.
Gene Therapy
The first gene therapy up for approval is called Zolgensma. If it is approved “Regenxbio will collect single-digit to low double-digit royalties, plus it could pocket up to $80 million in sales milestones”, according to the Motley Fool.
There’s no guarantee that Zolgensma will receive approval. But it bodes well for the drug that Novartis (NYSE:NVS) acquired it’s creator, AveXis, for $8.7 billion last year—such was the pharma giant’s belief in the therapy.
1 in 15 Chance
But this is only one case of Regenxbio’s AAV in use. There are plenty of other potential success stories on the horizon too. In fact, there are 14 companies actively developing therapies using its technology. These include Ultragenyx and Sarepta Therapeutics.
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It might be an assurance to know that RGNX stock has, in effect, a 1 in 15 chance of major gains off the back of one of those company’s receiving FDA approval.
Aside from its viral vectors—which are a crucial component in the success of gene therapies—Regenxbio is developing its own gene therapies too so there is a lot of potentials here for investors to keep a close watch on.
Is RGNX stock on your radar?
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