Leerink Partners has raised its price target for “outperform-rated” OvaScience (NASDAQ:OVAS) to $56 from $23 after a company investor event where management announced major achievements for all three products. The stock closed at $34.96 on Wednesday.
“Our key takeaways include AUGMENT training cycles (150 vs. 40-to-60) and announced pricing ($15,000-to-$25,000 vs. $15,000) exceed expectations, suggesting physician confidence in initial efficacy data; launched in five (vs. four) countries reflecting best case scenario, including Japan and UK, indicating large market potential; and OvaTure initial proof of concept (EggPC mature into GV stage egg) marks a potentially transformative breakthrough for IVF field,” writes analyst Gena Wright.
While the speed of initial commercial adoption remains to be seen, she said experience with AUGMENT training cycles and favorable geographic regions suggest 2015 guidance (about 1,000 cycles) is achievable.
Ms. Wang said her new price target includes OvaPrime in her valuation. “While OvaPrime launch (by yearend 2015) provides a medium-term revenue contribution, in our view OvaTure development could provide significant upside to the stock,” she added.
