Agios Pharmaceuticals: Strong Thalassemia Data Makes A Tempting Bull Case

Summary

  • Agios Pharmaceuticals completed its IPO in 2013 and sold its oncology portfolio for $1.8bn in 2021. Its stock price is down 50% across a 5-year period.
  • The company's focus is now on mitapivat, which has been approved for hemolytic anemia and is being studied for thalassemia and sickle cell disease.
  • Positive results from the Phase 3 study of mitapivat in thalassemia suggest a potential approval in 2025 and a larger market opportunity.
  • The SCD indication is even larger, and management believes it can secure approval in 2026.
  • The recently approved gene therapies to treat SCD constitute a major threat - not least as Vertex's CASGEVY will likely soon be approved in thalassemia - but AGIO's oral pill has the edge on convenience. This could be a speculative buy opportunity.

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Investment Overview

Cambridge, Massachusetts-based Agios Pharmaceuticals (NASDAQ:AGIO) completed its Initial Public Offering over a decade ago in July 2013, raising ~$106m via the issuance of ~5.9m shares priced at $18 per share.

The company developed and successfully won approval

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AGIO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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