KalVista Pharmaceuticals' (KALV) drug candidate sebetralstat is a promising, on-demand oral treatment for hereditary angioedema that demonstrated efficacy comparable to approved injectables with the added convenience of oral dosing in a phase 3 study, BofA Securities said in a note on Wednesday.
The firm assigned a 75% likelihood of success for the drug in the US market and projects that risk-adjusted peak sales of $604 million by 2035 will contribute $19 per share to KalVista's valuation.
Despite a competitive acute hereditary angioedema market, sebetralstat's oral dosing offers significant differentiation, potentially driving broad adoption as injectable therapies can be cumbersome and delay treatment, according to the note.
BofA said that the launch of Biocryst Pharmaceuticals' (BCRX) Orladeyo demonstrates a strong precedent for market success as it achieved a significant share in a crowded hereditary angioedema market due to its oral dosing advantage.
The firm initiated coverage of KalVista with a buy rating and a price objective of $22.
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