Prime Medicine (PRME) cleared a key regulatory hurdle as the Food and Drug Administration approved the start of human testing for PM647, a treatment for alpha-1 antitrypsin deficiency, a genetic disease that can cause serious lung and liver damage. Oppenheimer said Thursday in a report.

Oppenheimer said the clearance also highlights the modular nature of Prime's gene-editing platform and management's strong execution, noting that PM647 shares most of its delivery components with other programs in development.

Although Prime's shares remain under pressure due to financing concerns and weak performance relative to the SPDR S&P Biotech ETF and other gene-editing peers, Oppenheimer said management remains comfortable with its access to capital.

Oppenheimer reiterated its outperform rating on Prime stock with an $11 price target.

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