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Cantor Fitzgerald has reaffirmed its Overweight rating on Travere Therapeutics, following insights from a nephrology key opinion leader (KOL) regarding the use of the company’s drug Filspari in IgA nephropathy (IgAN). The KOL’s view suggests that Filspari’s market adoption may not be significantly affected by the recently approved competitor drug Vanrafia, despite Vanrafia’s less stringent monitoring requirements.
The KOL, a high-volume nephrologist, indicated that the lack of Risk Evaluation and Mitigation Strategy (REMS) and less strict liver enzyme monitoring for Vanrafia, a Novartis (SIX:NOVN) product, is not seen as a major advantage over Filspari. This perspective implies that the introduction of Vanrafia might have minimal impact on the initiation of new patients on Filspari. Despite showing impressive revenue growth of 60.5% in the last twelve months, InvestingPro analysis reveals the company faces challenges with low gross profit margins of 3.4%. Discover 10+ additional exclusive insights and detailed financial metrics with an InvestingPro subscription.
Following the full approval for the treatment of IgAN, the KOL reported an increased use of Filspari in patients with a certain level of proteinuria, measured by the urine protein-to-creatinine ratio (UPCR). The KOL’s approach could suggest a potential for Filspari’s increased market penetration and usage in IgAN treatment.
With the company’s next earnings report due in 8 days on May 1, investors are now looking forward to the next significant update for Travere Therapeutics, which will be the U.S. Food and Drug Administration’s (FDA) decision regarding the acceptance of a supplemental new drug application (sNDA) for Filspari for the treatment of focal segmental glomerulosclerosis (FSGS). The company maintains healthy liquidity with a current ratio of 2.08, providing financial flexibility as it pursues regulatory approvals. The decision will also determine if Filspari will be granted a priority review, which could lead to a Prescription Drug User Fee Act (PDUFA) date in September.
The analyst’s comments highlight the ongoing developments in the treatment landscape for IgAN and the strategic positioning of Filspari in the face of new market entrants. The FDA’s forthcoming decisions are anticipated to have implications for Travere Therapeutics’ market prospects and investor sentiment.
In other recent news, Travere Therapeutics reported fourth-quarter 2024 earnings that exceeded analyst expectations, with an earnings per share of -$0.47 compared to the forecasted -$0.64. The company also surpassed revenue forecasts, achieving $74.79 million against a projected $71.08 million. Despite these positive results, Travere’s stock experienced a decline in aftermarket trading. Meanwhile, the company has submitted a supplemental New Drug Application to the FDA for FILSPARI® as a potential treatment for focal segmental glomerulosclerosis (FSGS), a rare kidney disorder. This submission is based on positive findings from the Phase 3 DUPLEX Study and the Phase 2 DUET Study. Analyst firms, including Canaccord Genuity and Citi, have expressed optimism about Travere’s prospects, with Canaccord raising its price target to $47 and Citi to $35, both maintaining Buy ratings. Cantor Fitzgerald also remains positive, citing the potential approval and market uptake of FILSPARI for FSGS. These developments reflect Travere’s strategic focus on expanding its market presence in nephrology and preparing for new product launches.
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