Biotech Stock Is Poised To Surge 100%, Citing Obesity-Related Hypertension As An Opportunity

Mineralys Therapeutics is on pace to prosper inside the obesity-related hypertension sector, which might translate into big gains for the company, Credit Suisse stated.

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With an outperform rating, analyst Richard Law started covering the healthcare stock. Compared to where it ended the Monday session, Law's price estimate of $40 suggests an increase of more than 100% over the following 12 months.

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"There is a substantial unmet demand in resistant HTN," he said in a client note on Tuesday, adding that Mineralys has "potential best-in-class data through with a targeted and rigorous approach." HTN is used as shorthand for hypertensive.

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Spironolactone, a medication with adverse effects including male breast growth and increased potassium, is currently the standard of therapy. But, Law said that results from a trial of Mineralys' oral medication lorundrostat already point to better outcomes for patients who are fat. And, the medicine is projected to succeed in clinical studies moving forward, he said.

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Law is also hopeful about the drug's potential in the market for treating hypertension, particularly in patients who are fat. Through interactions with nephrologists and cardiologists, he learned that they would be willing to recommend lorundrostat over generic substitutes.

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Undoubtedly, there are still issues that the business hasn't addressed. Law added that even if the results seem promising, potassium levels with lorundrostat still seem to be elevated. Also, additional phases and data are anticipated in the upcoming years.

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Even if the medicine is limited to merely obese people with hypertension, Law emphasized the financial opportunity available, stating there may be between 7 million and 8 million targetable U.S. patients. By 2037, he predicted that Lorundrostat's peak global sales will be $2.6 billion non-risk adjusted or roughly $900 million risk adjusted.

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Law added that Mineralys' market cap of about $800 million indicates that business is undervalued. A potential cooperation that materializes following the release of the formal second-phase data could increase the stock in the near future, he said.