Today, the quiet period has expired for Sienna Biopharmaceuticals (SNNA), allowing firms involved with its IPO to publish research and estimates for the first time. And the few initiations that have been published this morning are quite eye-popping with price targets well above the current stock price. Consequently, the stock is higher by about 2% so far this morning.
Before discussing the initiations in more detail, here is some background on the company: SNNA, which went public on July 27, is a clinical-stage biopharmaceutical developing topical products for dermatology and aesthetics. It’s advancing multiple product candidates derived from its Topical by Design platform, all of which are designed to be suitable for chronic administration in patients with inflammatory skin diseases and other dermatologic and aesthetic conditions.
The company has two platforms -- Topical by Design and Topical Photoparticle. Its proprietary Topical by Design platform is designed to develop topical treatments for inflammatory skin diseases based on small molecules with well understood mechanisms of action. Using this technology, the resulting new chemical entities, or NCEs, are designed to penetrate the skin for highly localized delivery of the drug against the selected targets or pathway, while minimizing systemic exposure. Its lead product candidates from Topical by Design platform are SNA-120 and SNA-125.
SNA-120, is a first-in-class inhibitor of TrkA in Phase 2b clinical development for the treatment of pruritus, or itch, associated with psoriasis, as well as for psoriasis itself. Its second Topical by Design product candidate, SNA-125, is a dual JAK3/TrkA inhibitor being developed to treat atopic dermatitis, psoriasis and pruritus.
With SNA-001, Sienna is using photothermolysis to both treat acne vulgaris and reduce unwanted light-pigmented hair. In the case of acne, SNA-001 targets one of the key structures implicated in the origin of acne, the sebaceous gland. In the case of unwanted hair, which cannot be removed with lasers alone, SNA-001 targets the hair follicle.
As with most clinical stage biopharmas, Sienna does not have any financials at this point. It has no products approved for commercial sale. Also, it’s not profitable and Sienna expects to incur losses for the foreseeable future.
Rewinding back to the initiations, all three this morning were bullish with JP Morgan initiating with an Overweight and $28 target, 44% higher from current prices. But, the one that really stands out is Cowen's Outperform and $50 target, a whopping 158% higher from Friday's close. Lastly, BMO Capital also initiated it with an Outperform and $30 target.
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