Experts see 145% upside for speculative biotech stock targeting rare diseases

Silence Therapeutics has already climbed 111% since Die Presse discussed the speculative biotech stock in March. Now, analysts see room for a further 145% gain, driven by early results in the company’s work on rare diseases.

The British company is considered a pioneer in RNA interference, or RNAi. Its approach uses short RNA segments to stop cells from producing disease-causing proteins. Silence Therapeutics focuses on blood disorders, cardiovascular disease and rare illnesses.

The company’s leading candidate, Divesiran, is being tested for polycythaemia vera, a rare blood disorder. Preliminary Phase II results released in mid-August showed an 88% response rate among patients receiving Divesiran, compared with 19% in the placebo group. The results pushed the shares higher after an earlier rise, while the company also completed a capital increase successfully.

The stock has since eased back to $14.59. Jefferies has maintained its buy recommendation and set a $35 target. Six of the seven analysts listed by Bloomberg recommend buying, producing an average target of $35.80 and implied upside of 145%. Goldman Sachs is the exception, recommending a sale and forecasting a fall to $10. The article warns that the investment remains speculative and is not a substitute for professional advice.