Truist Securities has taken a bullish stance on Longboard Pharmaceuticals, Inc. (LBPH), initiating coverage with a Buy rating and a price target of $60. The investment firm believes that Longboard’s focus on the central nervous system (CNS) and its promising epilepsy assets, particularly the lead drug bexicaserin (LP352), position the company for significant growth.
Bexicaserin is currently in development for the treatment of seizures associated with Developmental and Epileptic Encephalopathies (DEEs) in patients two years of age and older. The drug has already received Breakthrough Therapy designation from the FDA, highlighting its potential to address a significant unmet need. Longboard is planning to advance bexicaserin into Phase 3 trials later this year.
Recent data from the PACIFIC Phase 1b/2a trial and the ongoing 52-week open-label extension of the study demonstrated promising results. Bexicaserin achieved a median seizure reduction of 57.7% in countable motor seizures over an approximate 9-month treatment period.
Truist’s optimistic outlook stems from the analyst’s belief that bexicaserin is a strong competitor to Fintepla (fenfluramine), the current market leader for epilepsy treatment, produced by UCB SA. Fintepla is projected to generate approximately $1 billion in sales by 2027, indicating the significant market potential. However, Truist highlights that bexicaserin offers a crucial advantage: it does not bind to the 5HT2B receptor, which is linked to the heart-related side effects observed with Fintepla. This superior safety profile, coupled with comparable efficacy, positions bexicaserin as a potential replacement for Fintepla and a driver of market expansion, which currently remains under-penetrated at around 5%.
Longboard is also developing LP659 for the potential treatment of rare neuroinflammatory conditions, further expanding its reach within the CNS therapeutic space. The company’s robust pipeline and the promising potential of bexicaserin have led Truist to forecast a bright future for Longboard Pharmaceuticals.
