Design Therapeutics Shares Fall As Goldman Sachs Initiates With Sell Rating

Goldman Sachs initiated coverage of Design Therapeutics Inc (NASDAQ:DSGN) with a Sell rating and a $10 price target. 

• The analyst Madhu Kumar has caution about the Company's lead indication of Friedreich ataxia. 
• Natural history studies provide little support that differences in FXN levels will shift the FA disease course. 
• At the same time, high-dose nicotinamide has already achieved clinically meaningful FXN induction with the minimal observed change in clinical effect in FA patients, Kumar tells investors in a research note. 
• He believes Design shares are "priced with little room for error."
• In September, the Company posted new preclinical data from its novel DM1 GeneTAC program.
• The data demonstrated DM1 GeneTAC's potential to potently and selectively block the mutant DMPK gene expression in DM1 patient cells. 
• Reduction of nuclear foci was associated with clear correction of splicing defects involved in the multi-system pathophysiology of DM1.
• Price Action: DSGN shares are down 4.85% at $14.13 during the market session on the last check Wednesday.