JPMorgan Starts Electra (ETRA) at Overweight

JPMorgan analyst Anupam Rama initiates coverage on Electra (NASDAQ: ETRA) with a Overweight rating and a price target of $36.00.

The analyst comments: “Central to our thesis is ipsoprubart (fully human IgG1 pan-SIRP monoclonal antibody), currently in a Phase 2/3 pivotal program in secondary hemophagocytic lymphohistiocytosis (sHLH), a significant unmet need indication underscored by a ~50% 2-month survival rate in malignancy-associated HLH patients (a subset of the broader sHLH patient population). In an early Phase 1b study, ipsoprubart showed 100% 2-month overall survival in 1L malignancy-associated HLH patients, with no major safety concerns. Indeed, from current levels, we see ETRA shares as undervalued on ipsoprubart in sHLH alone, implying value in the ~$2- handle / share range (JPMe peak sales ~$2B and assume a POS of ~60%). Further, beyond sHLH, we also formally model ipsoprubart in T/NK cell malignancies (JPMe peak sales of ~$700M+ and assume a POS of ~25%), but we do not model ELA822 (SIRPγ-specific antibody) formally, given the early stage of the program. In our view, both aforementioned programs represent potential long-term upside drivers for ETRA shares. Finally, we see plenty of upside model levers, including the addressable patient population (sHLH in particular), peak sales, and probability of success (pending clinical progress).”

For an analyst ratings summary and ratings history on Electra click here. For more ratings news on Electra click here.

Shares of Electra closed at $9.05 yesterday.

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