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On Monday, BofA Securities analyst Tazeen Ahmad updated Ascendis Pharma’s (NASDAQ:ASND) price target, increasing it to $216.00 from the previous $201.00, while reaffirming a "Buy" rating on the stock. The $10.45 billion market cap company, currently trading at $173.72, enjoys strong analyst support with a highly bullish consensus rating. According to InvestingPro, the stock has shown impressive momentum, gaining over 30% in the past six months. The revision followed Ascendis Pharma’s announcement of positive interim results from its Phase 2 COACH trial. The trial is evaluating a combination treatment of QW TransCon CNP and QW TransCon hGH for children with Achondroplasia (ACH). While the company posted 12% revenue growth in the last twelve months, InvestingPro data shows it remains in investment mode with significant R&D expenses.
The company reported significant annualized growth velocity (AGV) benefits with the combination therapy. Treatment-naive patients (N=12) saw an increase in AGV of 4.23cm/year, while patients already treated with TransCon CNP (N=9) experienced a 3.10cm/year increase. These outcomes are notably higher compared to the 1.49cm/year AGV benefit observed with TransCon CNP monotherapy versus placebo at Week 52 in the Phase 3 ApproaCH study.
Ascendis Pharma plans to release 52-week data from the COACH trial in the fourth quarter. This data will inform the design of a forthcoming Phase 3 combination trial set to begin in the same quarter. The analyst highlighted the open-label nature of the data but considered the results to be favorable. The efficacy, coupled with the convenience of weekly dosing, was seen as potentially enabling Ascendis Pharma to capture a more significant market share, even if it enters the market after competitors. For deeper insights into Ascendis Pharma’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Ascendis Pharma has announced the U.S. Food and Drug Administration’s (FDA) acceptance of their New Drug Application (NDA) for TransCon CNP, a treatment for achondroplasia, with a priority review status. The FDA has set a goal date of November 30, 2025, for its decision, and no advisory committee meeting is planned. Clinical trials have shown that TransCon CNP significantly improves growth velocity and other health metrics compared to placebo, with a safety profile similar to placebo. Analysts from BofA Securities have raised the price target for Ascendis Pharma stock to $201, maintaining a Buy rating due to the positive developments. Stifel analysts also reiterated a Buy rating with a price target of $212, citing optimism around the company’s progress with its treatment for hypoparathyroidism, Yovipath. Ascendis Pharma is actively working to enhance patient access to its therapies and streamline treatment processes, including efforts to reduce conversion time to its paid drug program. The company is also anticipating results from the COACH study, which may provide further insights into the benefits of combining TransCon CNP with Skytrofa. Ascendis Pharma remains focused on addressing unmet medical needs and improving treatment outcomes for patients with achondroplasia.
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