Dyne Therapeutics (DYN) investment thesis remains intact despite a setback for Novartis (NVS) in a phase 3 trial for myotonic dystrophy type 1, as differences in drug targeting, payload and clinical strategy could lead to different outcomes, RBC Capital Markets said in a Tuesday note.

According to the analysts, Dyne's approach uses an antibody fragment rather than a full-length antibody, an antisense oligonucleotide rather than small interfering RNA, and a six month primary endpoint versus 12 months for Novartis' trial.

RBC said Dyne remains confident in its phase 3 study, with data expected in Q1 2027.

Dyne is also running a confirmatory phase 3 study using the five times sit-to-stand test as its primary endpoint, providing a second opportunity to achieve statistical significance, the note said.

The analysts also see a potential catalyst in Dyne's DMD51 program, with a US Food and Drug Administration decision expected Jan. 21, 2027.

RBC maintained its outperform rating on Dyne Therapeutics and lowered its price target to $30 from $35.

Price: 19.73, Change: -0.58, Percent Change: -2.86