Tue. Dec 7th, 2021

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Last week was a fairly disappointing one too CSL Limited (ASX: CSL) stock price.

Despite announcing its research and development (R&D) update for 2021, the biotherapy company’s shares ended the period with a weekly decline of 0.5%.

What was the reaction to the R&D update?

The team at Goldman Sachs looked through the update and gave their verdict.

According to the note, CSL112 is one of the products under development that the broker is most positive about. This is a potential treatment for early recurrent cardiovascular events following an acute myocardial infarction.

Goldman commented: “Across the pipeline, we believe that CSL112 represents the most material option and remains the primary focus among the investor base.”

It notes that CSL112’s final phase three temporary analysis is now targeted before July 2022 instead of September / October 2022.

What else?

Goldman also spoke positively about its EtranaDez product candidate.

It said: “EtranaDez offers potential for functional healing in hemophilia B. In May 2021, CSL acquired global rights from UniQure to EtranaDez, a first-class and potentially best-in-class gene therapy for hemophilia B.”

The broker has previously talked about how this product can be a significant contribution to revenue in the future, if all goes according to plan.

Is the CSL share price good value?

Goldman concluded: “Based on today’s update, we are updating our pipeline valuation framework, primarily reflecting: 1) the incorporation of EtranaDez for the first time (leading heme B gene therapy); 2) a modest increase in PoS for CSL112 (from 10% to 15%), reflecting successful navigation of other vain analysis. ”

“However, we also include several clinical delays across the pipeline (largely reflecting challenges associated with Covid-19). By incorporating these changes, we upgrade our risk-adjusted pipeline valuation to A $ 57 / share from A $ 44 (non-risk-adjusted: A $ 205, from A $ 200). ”

This ultimately led to the broker retaining its neutral rating but raising its price target on the CSL stock price to $ 305.00.

Based on the current CSL stock price of $ 295.86, this indicates that there is currently a modest upward 3.1% for investors.

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