Reneo Pharmaceuticals initiated with an Outperform at William Blair

William Blair analyst Myles Minter last night initiated coverage of Reneo Pharmaceuticals with an Outperform rating and $35.55 fair value estimate. Reneo is advancing mavodelpar, a selective peroxisome proliferator-activated receptor-delta agonist, to restore fatty acid oxidation and energy production in primary mitochondrial myopathies, where there are no FDA-approved therapies, the analyst tells investors in a research note. If the STRIDE study is successful and mavodelpar receives regulatory approval, the firm sees rare disease blockbuster potential and models peak sales of $1.48B in the U.S. alone. Blair says that although Reneo has a minimalist pipeline, it sees potential for the roliferator-activated receptor-delta agonist agonist mechanism to be applied in other mitochondrial disorders.