Mirum Pharmaceuticals' (MIRM) acquisition of Bluejay Therapeutics expands the company's rare liver disease pipeline with brelovitug, a hepatitis delta virus therapy that has shown "solid" phase 2 results, Morgan Stanley said in a note Tuesday.
The firm said the acquisition provides synergies by leveraging current infrastructure and positions the company for about $4 billion in peak revenues.
Brelovitug's topline phase 3 results are expected in H2 2026. Morgan Stanley said it included hepatitis delta virus to its model with about 70% probability of success and conservative unadjusted peak sales of around $665 million.
The firm said it also expects momentum from "multiple key catalysts" in 2026, including data from volixibat in Q2 2026 and potential label expansion.
Morgan Stanley reiterated its overweight rating on Mirum and raised its price target to $95 from $81.
Price: 66.32, Change: -1.58, Percent Change: -2.32
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