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On Tuesday, Cantor Fitzgerald reaffirmed its Overweight rating and $170.00 price target on Ascendis Pharma (NASDAQ:ASND) shares, currently trading at $119.49. The firm’s analyst highlighted the early adoption of Yorvipath in the United States for the treatment of hypoparathyroidism (hypopara). According to InvestingPro data, analyst targets range from $124.49 to $288.64, with three analysts recently revising their earnings estimates upward. Yorvipath became commercially available in late December, and initial uptake suggests that a significant subset of patients with severe symptoms may begin treatment in the coming months.
The analyst from Cantor Fitzgerald mentioned discussions with two endocrinologists who treat a combined total of over 110 hypopara patients. These conversations suggest an initial bolus of severe patients, approximately 15% of their total patient population, may transition to Yorvipath shortly. The market awaits an update on new prescription numbers, which were last reported in early January, during Ascendis Pharma’s fourth-quarter earnings call scheduled for Wednesday, February 12, 2025. The company has shown impressive revenue growth of 115.54% over the last twelve months, maintaining a strong gross profit margin of 84.82%.
The analyst also noted that while a considerable number of patients could switch to Yorvipath, the shift may occur gradually. Factors influencing this transition include insurance processes and the accumulation of positive experiences among physicians prescribing the new treatment. Several factors are expected to contribute to Yorvipath’s adoption: increasing awareness of hypoparathyroidism symptoms among patients and doctors, updated treatment guidelines released in 2022 with anticipation of a newer version, and emerging clinical data supporting the long-term benefits of Yorvipath.
Ascendis Pharma’s stock performance and investor sentiment may reflect the anticipation of the fourth-quarter earnings report and the potential impact of Yorvipath’s market penetration. InvestingPro analysis indicates the company’s overall financial health score is "FAIR," with particularly strong growth potential. The company’s strategic focus on addressing hypoparathyroidism, a condition with previously limited treatment options, positions Yorvipath as a potentially significant addition to their portfolio. Subscribers to InvestingPro can access the comprehensive Pro Research Report, which provides detailed analysis of Ascendis Pharma’s financial health, valuation metrics, and growth prospects.
The upcoming earnings call is expected to provide further clarity on the adoption rate of Yorvipath and its contribution to Ascendis Pharma’s growth trajectory. Investors and analysts alike will be closely monitoring the developments surrounding this new treatment and its reception in the healthcare community.
In other recent news, Ascendis Pharma has been the focus of several analyst adjustments and developments. JPMorgan raised its price target for the company to $167 and maintained an Overweight rating, citing the successful U.S. launch of Ascendis Pharma’s Yorvipath, which exceeded expectations. Goldman Sachs also reaffirmed its Buy rating on Ascendis Pharma shares, with a price target of $200, highlighting the company’s ongoing launch of its key PTH product in the United States.
UBS initiated coverage on Ascendis Pharma with a Buy rating and a price target of $196, expressing optimism for the company’s upcoming product launches. Jefferies raised its price target for Ascendis Pharma to $194, following positive clinical trial results for the company’s Skytrofa treatment.
However, Ascendis Pharma experienced a dip when it released its full-year guidance for Skytrofa revenue, which fell short of the average analyst expectations. Despite this, the company’s overall revenue outlook for 2024 reflects a diversified income stream, including both product sales and strategic partnership milestones. These are the recent developments for Ascendis Pharma.
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