Canaccord Genuity maintains Buy rating on AxoGen stock amid shutdown concerns

Published 01/10/2025, 19:08
Canaccord Genuity maintains Buy rating on AxoGen stock amid shutdown concerns

Investing.com - Canaccord Genuity has reiterated a Buy rating and $24.00 price target on AxoGen, Inc. (NASDAQ:AXGN) as the company navigates potential impacts from the government shutdown.

The U.S. government shut down Tuesday for the first time since December 2018, with approximately 41% of Health and Human Services employees furloughed. While the FDA will continue reviewing some drugs and medical devices, approval of certain new applications will cease during the shutdown period.

Canaccord notes that during the 2018-2019 shutdown, the FDA was able to continue operations using carryover user fees, though it could not accept new fees. AxoGen has informed Canaccord that it still expects FDA action by its December 5 PDUFA date for its Avance product.

The research firm identifies three potential delay risks: the FDA exhausting carryover funding, shutdown-related work backlogs pushing deadlines, and the shutdown extending beyond the PDUFA date. However, Canaccord considers significant delays unlikely given that the BLA filing was accepted nearly a year ago.

Canaccord acknowledges that a prolonged shutdown could increase delay risks, particularly regarding the timing of FDA labeling feedback, which remains an important consideration for AxoGen’s Avance product.

In other recent news, Pfizer has announced a significant agreement with the Trump administration to lower prescription drug prices in the United States. This voluntary deal ensures that American patients will receive drug prices comparable to those in other developed countries. Additionally, the agreement includes Pfizer’s participation in the upcoming TrumpRx.gov platform, where consumers can purchase Pfizer medicines at discounts ranging from 50% to 85%. The company has committed to listing new product launches at the Most Favored Nation price, as part of its efforts to reduce costs for Medicaid customers.

BMO Capital has reiterated its Outperform rating on Pfizer, maintaining a $30 price target, following the announcement of this pricing agreement. Similarly, TD Cowen has reiterated its Hold rating and $30 price target, describing the Most Favored Nation agreement as an "important positive" for pharmaceutical stocks. Meanwhile, Swiss pharmaceutical companies are anticipated to follow Pfizer’s lead in striking similar price deals with the U.S. government. These developments indicate a broader trend in the pharmaceutical industry towards more favorable pricing agreements.

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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