B Riley Securities initiated coverage on Denali Therapeutics Inc DNLI with a Buy rating and a price target of $38.
Analysts Mayank Mamtani, William Wood, and Brandon Carney said that amid an ongoing innovation wave within central nervous system therapeutics, Denali stands out based on its proprietary blood-brain barrier (BBB) shuttling platform approaches, which enables the safe, efficient, and effective delivery of complex large and small molecules.
The analysts are optimistic about the substantial advancements achieved with the Transport Vehicle (TV) platform, led by a commendable founding executive team from ex-Genentech Neuroscience.
Their primary aim is to set cutting-edge R&D standards in neurodegenerative diseases, especially in areas like lysosomal storage disorders, Amyotrophic Lateral Sclerosis (ALS), Parkinson’s, and Alzheimer’s.
The emerging clinical datasets from DNLI’s programs, whether independently owned or in collaboration, are anticipated to drive value in the coming quarters and years.
Partnered programs, especially for Biogen Inc’s BIIB ATV-Abeta (for Alzheimer’s) and SAR443820 (for ALS), have been underestimated.
Biogen’s ATV-Abeta could benefit from upcoming data from Roche at CTAD’23 (10/24-27), which may improve gantenerumab by using a new technology that significantly increases its effect on brain amyloid-beta.
Likewise, the effective RIPK1 inhibition by ‘3820 might show promising results in a 2024 study for ALS.
Price Action: DNLI shares are up 2.79% at $24.51 on the last check Wednesday.