Goldman Sachs initiated coverage of Design Therapeutics Inc (NASDAQ:DSGN) with a Sell rating and a $10 price target.
- The analyst Madhu Kumar has caution about the Company's lead indication of Friedreich ataxia.
- Natural history studies provide little support that differences in FXN levels will shift the FA disease course.
- At the same time, high-dose nicotinamide has already achieved clinically meaningful FXN induction with the minimal observed change in clinical effect in FA patients, Kumar tells investors in a research note.
- He believes Design shares are "priced with little room for error."
- In September, the Company posted new preclinical data from its novel DM1 GeneTAC program.
- The data demonstrated DM1 GeneTAC's potential to potently and selectively block the mutant DMPK gene expression in DM1 patient cells.
- Reduction of nuclear foci was associated with clear correction of splicing defects involved in the multi-system pathophysiology of DM1.
- Price Action: DSGN shares are down 4.85% at $14.13 during the market session on the last check Wednesday.
