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Why Dicerna Pharmaceuticals Stock Rose 7.7% Yesterday

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Stock performance

On September 13, Dicerna Pharmaceuticals (DRNA) stock rose 7.71% to $16.62 from its previous day’s close of $15.43. On the day, Dicerna stock closed at a rise of 361% over its 52-week low of $3.60 on September 13, 2017.

Dicerna hit its 52-week high of $17.50 on September 5.

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Recent developments

On September 5, Dicerna announced primary proof-of-concept data from its Phase 1 PHYOX trial. In the trial, Dicerna’s lead drug candidate, DCR-PHXC, showed that it was capable of bringing urinary oxalate levels to a normal or near-normal range in individuals with primary hyperoxaluria type 1 and hyperoxaluria type 2.

Dicerna noted that DCR-PHXC proved to be safe and well tolerated during the observation of the ongoing trial. The company is conducting studies with DCR-PHXC and investigating its potential as a therapy for all forms of hyperoxaluria.

DCR-PHXC is a leading drug candidate developed using Dicerna’s GalXC technology, a platform for the development of RNAi-based (ribonucleic acid interference) therapies to silence genes that are associated with liver diseases.

Financials in a nutshell

On June 30, Dicerna reported net cash and cash equivalents of $82.3 million compared to $113.7 million on December 31, 2017.

In the second quarter, Dicerna reported net income of -$35.6 million compared to $24.0 million in the second quarter of 2017. The rise in its operating expenses primarily contributed to the fall in its net income in the second quarter.

In the first half, Dicerna reported net income and EPS of -$51.2 million and -$0.98, respectively, compared to -$38.2 million and -$1.84, respectively, in the second quarter of 2017.

In the second quarter, Dicerna reported net operating expenses of $37.3 million compared to $15.4 million in the second quarter of 2017.

Analysts’ recommendations for DRNA and its peers

Of the eight analysts tracking DRNA in September, two have recommended “strong buys,” while four have recommended “buys” on the stock. Two analysts have recommended “holds” on Dicerna in September.

Of the six analysts tracking Arbutus Biopharma (ABUS) in September, ~50% have recommended “buys.” Among the 16 analysts tracking Alnylam Pharmaceuticals (ALNY), ~51% have recommended “buys.”

On September 13, Dicerna, Arbutus Biopharma, and Alnylam Pharmaceuticals had consensus 12-month target prices of $18.36, $10.79, and $144.47, respectively, representing potential returns on investment of ~10.47%, ~11.83%, and 52.13%, respectively, over the next 12 months.

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