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On Wednesday, Cantor Fitzgerald reiterated its Overweight rating on Zevra Therapeutics, Inc. (NASDAQ: ZVRA) with a steady price target of $25.00. Currently trading at $8.07, the stock has shown strong momentum with a 29% return over the past year. According to InvestingPro data, analyst targets range from $14 to $25, suggesting significant potential upside. The firm’s analyst expressed confidence in the company’s performance, particularly highlighting Zevra’s success in transitioning patients from its Expanded Access Program (EAP) to its commercial drug. All active patients, along with 109 total prescription enrollment forms, were converted by the end of the year. The company, with a market capitalization of $431 million, has demonstrated strong revenue growth of 48% in the last twelve months, though InvestingPro analysis indicates the company is currently burning through cash.
The analyst noted the significance of the full transfer of active patients, suggesting that the treatment is considered meaningful by those receiving it. This observation is supported by the fact that some patients have been on the treatment for over five years, which may indicate a high rate of compliance. The process of transitioning patients also includes exit interviews, which further reinforces the analyst’s positive outlook.
Zevra Therapeutics is also intensifying its efforts to support the identification and diagnosis of patients with Niemann-Pick disease type C (NPC), a rare and progressive genetic disorder. The firm’s analyst drew parallels to the impact of miglustat, a treatment available in the European Union, which after more than a decade on the market, has been associated with an increase in diagnoses. The analyst anticipates that Zevra’s efforts could lead to a similar pattern of increased diagnoses in the United States over time. With an overall Financial Health score of "Fair" from InvestingPro and a solid current ratio of 2.88, the company appears positioned to support its growth initiatives. Discover 8 additional exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, Zevra Therapeutics reported its fourth-quarter 2024 financial results, revealing a net loss of $35.7 million, which translates to $0.67 per share, missing analyst expectations of a $0.40 loss per share. However, the company exceeded revenue forecasts, generating $12 million, driven by strong sales of its product, MyPlifa. JMP Securities responded by raising its price target for Zevra Therapeutics from $17 to $18, maintaining a Market Outperform rating. The firm highlighted Zevra’s progress with its Expanded Access Program, noting the completion of the prescription enrollment process for all active EAP patients.
Zevra’s financial update also included a cash reserve of $75.5 million, with guidance suggesting operational viability into 2029. The company anticipates additional financial benefits from the sale of a priority review voucher. Despite the larger-than-expected losses, the revenue beat indicates robust sales performance, particularly in the U.S. market. JMP Securities expressed optimism about Zevra’s growth trajectory and its potential for revenue generation. Furthermore, Zevra aims to expand into the European market, planning a Marketing Authorization Application in the second half of 2025.
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