Savara initiated with a Buy at Guggenheim

Guggenheim initiated coverage of Savara with a Buy rating and $7 price target. The firm is “encouraged by the promising clinical data to date” for the company’s lead product, molgramostim nebulizer solution for the treatment of autoimmune pulmonary alveolar proteinosis, or aPAP, and is “optimistic” molgramostim will deliver positive results in the ongoing Phase 3 IMPALA-2 trial. the firm, which assigns a 75% probability of success for the IMPALA-2 trial, assumes Savara will commercialize molgramostim on their own in the U.S. if successful and estimates adjusted U.S. molgramostim revenues of about $410M by 2033 and $540M by 2040.