Neurogene initiated with an Outperform at Leerink

Leerink analyst Mani Foroohar initiated coverage of Neurogene (NGNE) with an Outperform rating and $46 price target. The firm explicitly models NGN-401 for Rett syndrome, accounting for potential gene therapy competition, though it believes NGN-401 is likely to differentiate from key competitor Taysha Gene Therapies (TSHA) over time based on tighter control of gene expression in this indication with a narrow therapeutic window. The firm sees an “upside skew” to Neurogene’s risk/reward to this year’s data given sizeable total addressable market, regulatory flexibility and high unmet need in Rett syndrome.