Barclays upgrades Ionis Pharmaceuticals stock to Overweight on Tryngolza outlook

Published 01/07/2025, 06:50
Barclays upgrades Ionis Pharmaceuticals stock to Overweight on Tryngolza outlook

Investing.com - Barclays (LON:BARC) upgraded Ionis Pharmaceuticals (NASDAQ:IONS) from Equalweight to Overweight and raised its price target to $57.00 from $51.00 ahead of upcoming Phase 3 trial results for Tryngolza. The stock, currently trading at $39.51, has shown strong momentum with a 13% gain over the past six months. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 9.66.

The upgrade comes as Ionis prepares to release data from its CORE and CORE2 Phase 3 trials for Tryngolza in severe hypertriglyceridemia (sHTG) during the third quarter of 2025, likely in September. While InvestingPro analysis indicates the company isn’t expected to be profitable this year, it operates with a moderate debt level and strong financial flexibility. Get access to 8 more exclusive ProTips and comprehensive analysis with InvestingPro.

Barclays sees a high probability (greater than 90%) that the trials will hit their primary endpoint measuring percentage change in triglyceride levels from baseline, as well as all key secondary biomarker endpoints prior to acute pancreatitis analysis.

For the key secondary endpoint of acute pancreatitis (AP), Barclays estimates approximately 50-55% probability of achieving statistical significance, noting that a statistically significant AP benefit would be unprecedented.

Based on key opinion leader feedback, Barclays considers even a trend of acute pancreatitis benefit to be clinically meaningful for the treatment of severe hypertriglyceridemia.

In other recent news, Ionis Pharmaceuticals announced promising interim results from a Phase 1 trial of salanersen, developed in partnership with Biogen (NASDAQ:BIIB), for treating spinal muscular atrophy (SMA). The trial demonstrated significant reductions in neurofilament light chain levels and improvements in motor function among pediatric participants. Following these results, H.C. Wainwright reiterated its buy rating for Ionis Pharmaceuticals with a price target of $50. Additionally, Ionis has commenced a Phase 3 trial for ION582, targeting Angelman syndrome, with the first participant already dosed in the REVEAL study. In leadership changes, Chief Development Officer Richard Geary will retire in 2026, with Holly Kordasiewicz set to succeed him. Moreover, during its recent annual meeting, Ionis shareholders elected four directors and approved amendments to the company’s equity incentive plan. The meeting also ratified Ernst & Young LLP as the company’s auditors for 2025. These developments highlight Ionis Pharmaceuticals’ ongoing efforts in advancing its drug pipeline and organizational leadership.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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