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On Wednesday, Barclays (LON:BARC) made an adjustment to the financial outlook for PTC (NASDAQ:PTC) Therapeutics (NASDAQ:PTCT), reducing the price target from the previous $56.00 to $42.00. Despite this change, the firm maintained an Equalweight rating on the biopharmaceutical company’s stock. According to InvestingPro data, the stock has experienced a significant 27% decline over the past week, with analyst targets ranging from $40 to $113. InvestingPro analysis suggests the stock is currently overvalued based on its proprietary Fair Value model. Barclays’ analyst cited several key points from PTC Therapeutics’ recent announcements, including the company’s first-quarter 2025 revenue that exceeded expectations.
PTC Therapeutics reported a total net product and royalty revenue of $190 million for the first quarter of 2025, surpassing the consensus estimate of $168 million. This performance was largely attributed to the success of Translarna, which generated $86.2 million versus the consensus forecast of $68 million. InvestingPro data shows the company’s trailing twelve-month revenue reached $806.78 million, though analysts anticipate a 6% revenue decline for 2025. For deeper insights into PTC Therapeutics’ financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. Additionally, the company has raised its revenue guidance for 2025 to a range of $650-800 million, with a $50 million increase at the lower end, driven by revenue from its Duchenne muscular dystrophy (DMD) franchise.
The company concluded the first quarter with a solid $2.03 billion in cash reserves, following a licensing deal with Novartis (SIX:NOVN) (NVS) for PTC518, as reported by Emily Field. InvestingPro analysis reveals the company maintains a healthy current ratio of 2.35, indicating strong liquidity to meet short-term obligations. Two InvestingPro Tips highlight the company’s financial position, with several more insights available to subscribers. After the recent update of Phase 2 PIVOT-HD data for PTC518 in Huntington’s disease, PTC Therapeutics’ management is expected to engage in discussions with the FDA and NVS regarding the next steps. While the chances for an accelerated approval are seen as limited, positive feedback from regulatory authorities and successful Phase 3 trials could offer potential benefits.
Looking ahead, the management underscored that all New Drug Applications (NDAs) were reviewed by the Center for Drug Evaluation and Research (CDER). They anticipate the approval of Sepiapterin for phenylketonuria (PKU) by the Prescription Drug User Fee Act (PDUFA) deadline of July 29. Moreover, they noted that there will be no Advisory Committee (AdCom) meeting for vatiquinone in Friedreich’s ataxia (FA), with a PDUFA date set for August 19.
In other recent news, PTC Therapeutics reported strong financial results for the first quarter of 2025, with revenues reaching $1.176 billion. This figure includes a substantial $986.2 million in collaboration revenue from Novartis, which played a significant role in the company’s net income of $866.6 million. The company also raised its 2025 revenue guidance, increasing the lower end of its forecast from $600 million to $650 million. Despite a decline in its core business revenue, PTC Therapeutics’ collaboration with Novartis has bolstered its financial outlook. Analyst firms have reacted to these developments, with William Blair maintaining an Outperform rating, while JPMorgan adjusted its price target to $67, down from $75, but maintained an Overweight rating. Citi upgraded PTC Therapeutics’ stock from Sell to Neutral, noting the company’s revenue exceeded expectations, driven by strong Emflaza sales. PTC Therapeutics is also approaching significant regulatory events with upcoming PDUFA dates for its pipeline products, which could impact future performance.
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