In a July 2 research note, H.C. Wainwright & Co. analyst Michael King reported that "investment in Regeneron Pharmaceuticals Inc. (REGN:NASDAQ) pays off again" with its identification of a novel target for protection against obesity.
This target, isolated by Regeneron's genetics center, along with United States, United Kingdom and Mexican scientists, is gene GPR75, located in the brain's hypothalamus.
King reviewed the team's efforts and progress to date. In what he described as a "technical tour de force," researchers sequenced more than 654,000 exomes, or gene coding regions, from people living in the U.S., U.K. and Mexico to identify a mutation in five brain-expressed G-protein coupled receptors, including GPR75. These mutations are found in about 4 out of every 10,000 people.
Next, researchers showed, through an animal study, that mutation of GPR75 does what they purport. They fed a high fat diet to two sets of mice, those lacking the GPR75 gene (a Regeneron-created mouse model) and those with a normal copy of it. Those with the gene gained 44% more weight than their counterparts without it. Science Today published a paper by Regeneron that detailed this work.
"The significance of the Science Today paper is twofold," wrote King. "Not only do the collaborators find additional uncommon genetic alleles that are associated with weight loss, they also validated other putative obesity genes associated with weight gain, in particular those associated with the melanocortin 4 (MC4R) receptor."
Currently, King pointed out, Regeneron is working on developing antibody-based therapies that mimic the loss of the GPR75 gene. Also, it collaborating with other biopharmas, such as Alnylam, to develop a small inhibitory RNA (siRNA) approach to silencing the gene.
"Given the strength of Alnylam's technology platform, a candidate siRNA may soon emerge," added King.
The next hurdle for Regeneron relative to this program is to validate, via a clinical trial, that GPR75 is a legitimate target in humans, King highlighted.
"Whether or not GPR75 can be successfully developed in the clinic remains to be seen," King wrote. "No matter the case, Regeneron has succeeded in finding the proverbial genetic needle in a haystack."
H.C. Wainwright has a Buy rating and a $703 price target on Regeneron, the stock of which is trading now at around $574.62 per share.
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