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On Friday, Cantor Fitzgerald’s analysts showed confidence in Septerna Inc (NASDAQ:SEPN), as they raised the company’s price target from $20.00 to $25.00 while keeping an Overweight rating on the stock. Currently trading at $10.12, the stock has shown remarkable strength with a 51% gain over the past week. According to InvestingPro, analyst targets range from $11 to $27, with several more key metrics available to subscribers. The adjustment reflects Septerna’s progress with its pipeline, including the advancement of its MRGPRX2 NAM program for mast cell disorders, which is expected to enter clinical trials in the third quarter of 2025.
The firm’s analysts highlighted Septerna’s ongoing efforts to select an oral PTH agonist candidate for hypoparathyroidism (hypoPTH) to progress to the clinical stage later in the year. Additionally, the company is assessing TSHR NAM compounds for potential treatment of Grave’s disease and thyroid eye disease. With a market capitalization of $450.5 million, InvestingPro data shows the company maintains a strong cash position exceeding its debt, though it’s currently burning through cash rapidly.
Cantor Fitzgerald’s update to the price target also takes into account recent financial disclosures and strategic moves by Septerna. The analysts noted the company’s Q1 2025 financial updates and the partial monetization deal with Novo Nordisk (NYSE:NVO), which has led to a revision of Septerna’s technology value in their financial model. The new partnership with NVO is considered to bring valuable economics to Septerna, prompting the increase in the price target to $25.
Septerna Inc is actively working on its pipeline, with the goal of addressing various disorders through its clinical programs. The company’s advancement into clinical trials and strategic partnerships are significant steps forward in its development trajectory, as reflected in the updated price target by Cantor Fitzgerald. The firm reiterated its Overweight rating on Septerna, signaling its positive outlook on the company’s stock performance.
In other recent news, Septerna, Inc. announced a significant collaboration with Novo Nordisk, aiming to develop oral small molecule medicines for obesity and other cardiometabolic diseases. This partnership could potentially bring Septerna up to $2.2 billion, including over $200 million in upfront and near-term milestone payments, along with tiered royalties on global net sales. Meanwhile, Septerna faced a setback as it discontinued its Phase 1 clinical trial for SEP-786, a hypoparathyroidism treatment, due to elevated bilirubin levels in participants. Despite this, JPMorgan maintained its Overweight rating and $38 price target for Septerna, viewing the development as a limited impact on the company’s broader strategy. CEO Jeffrey Finer emphasized the company’s commitment to its oral small molecule PTH1R agonist program, planning to select a next-generation candidate for clinical trials. Non-clinical studies are underway to explore the bilirubin elevation mechanism, which was unforeseen in preclinical studies. Septerna is also advancing SEP-631, targeting mast cell diseases, with clinical trials expected to begin soon. Financially, Septerna reported $137.5 million in cash and securities as of September 2024, with additional IPO proceeds expected to support operations into the second half of 2027.
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