We rate SLDB High Risk based on the early stage of its data, the risks associated with gene therapies in general, and typically volatile nature of small/mid-cap biotech stocks.
Downside risks to our target price include: 1) Patients treated with SGT-003 develop liver damage that is not manageable or transient in nature; 2) SGT-003 does not receive FDA accelerated approval, extending the timelines to cash generation; and 3) Key pivotal studies of assets-under-development fail.
|