DISCLOSUREAPPENDIXATTHEBACKOFTHISREPORTCONTAINSIMPORTANTDISCLOSURES,ANALYSTCERTIFICATIONS,LEGALENTITYDISCLOSUREANDTHESTATUSOFNON-USANALYSTS.USDisclosure:CreditSuissedoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.25August2019Americas/UnitedStatesEquityResearchBiotechnologyU.S.BiotechnologyCOMMENTResearchAnalystsMartinAuster,M.D.2123256573martin.auster@credit-suisse.comTiagoFauth2123257569tiago.fauth@credit-suisse.comMarkConnolly2123257576mark.connolly@credit-suisse.comBiotechBusTour–InvestorMeetingNotesWehostedaBostonBusTourlastweek.Hereareourcompletenotesfromourmeetingswithcompaniesundercoverage(intheorderseen):RARX,XLRN,ALXN,ARNA,RARE,andSRPT.■RARXCSOverview:RARXisbuildinganinterestingand(fornow)differentiatedpipelineforitsanti-C5peptiderecentlyaddingtheIMNMindicationanda3rdNeuroindicationexpectedtobeannouncedwithinthenextmonthtocomplementitsPh3gMGprogramforzilucoplan.■XLRNCSOverview:WecalledXLRNa‘sleeper’ideainourH2’19previewandcontinuetothinkinvestorsmaybeoverlookinganicebalanceofwhatweseeasfairlyhighprobabilitycatalysts--(1)luspaterceptmyelofibrosisupdateatASHthisDec.thatsupportsamovetoPh3.;and(2)luspaterceptapprovalsinBthal(Dec.2019)andMDS(Apr.2020)—withacouplepipelineshotsongoalwithdecentoptionalityandlowinvestorexpectation(suggestinglimiteddownsiderisk).WeseethesotaterceptPULSARdatainearly2020carryingafavorableskew,inparticular.■ALXNCSOverview:Managementcontinuestoexecuteonitsbusinessplan,strengtheningthebasevalueofthebusiness,whilethestockpricehastreadwater.WethinktheupcomingEUpatenthearingandpossibleIPRissuancerisksaremostlyreflectedinthecurrentvaluationandseeareliefrallypost-theseeventsasthemarketrefocusesonsolidNTrevenueandearningsmomentumparticularlyintheSolirisCNSlaunches(gMGand,now,NMOSD)andSoliristoUltomirisconversion.ALXNhascomple...
