Will revolutionary gene-therapy treatment yield revolutionary returns?

by Aksel Husebo

for @hackinhumans

As you may remember, we are currently assessing companies to invest to take part in the wave of innovation in genetic therapeutics recent years. Today we will be investigating a recently published stock; Nightstar Therapeutics (NASDAQ: NITE). The stock was published late last year with an asking price of $14 per share, on the first day of trading however, the company finished at $24 per share. The company’s stock price has been trending downward since the peak in 2017, but we expect a higher potential, should the current drug trials show promising results. 

The company focuses on a niche area of genetics; therapies for rare diseases. One of its main and most advanced treatments is currently being evaluated for treatment of a rear genetic disorder called Choroideremia, which causes gradual loss of sight starting from childhood with night blindness. There are currently no treatments for this disease, but the company announced in March that they will start trials on patients with the disease. Updates from the observational study of this drug would provide investors with insight on the company’s progress and potential value.

Nightstar Therapeutics is currently trading at $14,68, with a market capitalization of $424 million. Although recent months have been stark for the share price, we believe the current price is low considering the company’s strong position in a critical niche drug.