Mizuho initiated coverage of Sol-Gel Technologies with an Outperform rating and $285 price target. The firm sees the company's SGT-610 as a potential first-in-class FDA-approved therapy to prevent new basal cell carcinoma lesions in Gorlin syndrome, with $1B peak sales potential. SGT-610 is "relatively de-risked," given its validated mechanism of action as systemic hedgehog inhibitors are already used off-label, the analyst tells investors in a research note. It believes Sol-Gel's Gorlin opportunity it underappreciated at current share levels.
