HomeMarket NewsRBC Optimistic About Lexeo Therapeutics' Potential in Treating Friedreich's Ataxia

RBC Optimistic About Lexeo Therapeutics’ Potential in Treating Friedreich’s Ataxia

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RBC Capital Markets has started coverage of recently listed Lexeo Therapeutics (NASDAQ:LXEO) with an outperform rating. The company’s management team and the commercial potential for its Friedreich’s ataxia drug candidate were cited as key reasons for the optimism.

The recent acquisition of Reata by Biogen for $7.3 billion was highlighted as a commercial validation of Friedreich’s ataxia as an indication. RBC noted that Lexeo’s drug candidate has demonstrated cardiac benefits at the proof-of-concept stage, a significant differentiator from Reata’s drug. The firm estimated a peak market opportunity of $1.1 billion for Lexeo’s drug, attributing $6 to its price target of $22 based on a 20% probability of success.

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