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On Monday, Cantor Fitzgerald reaffirmed its Overweight rating on Travere Therapeutics (NASDAQ:TVTX), which has seen its stock surge 21.31% in the past week and an impressive 248.48% over the last year. The firm highlighted the potential for the company’s drug, Filspari, to address the significant unmet medical need in focal segmental glomerulosclerosis (FSGS). According to InvestingPro data, analyst price targets range from $22 to $47, suggesting significant upside potential. FSGS is a rare disease with no current treatment options, and Travere’s Filspari is expected to have no competition for several years.
The firm’s positive outlook is based on several factors, including the high unmet need for FSGS treatment, which is greater than that for IgA nephropathy (IgAN) according to their physician survey. Additionally, physicians are already familiar with Filspari and comfortable with its safety profile as observed in real-world settings. This market opportunity comes as Travere demonstrates strong revenue growth of 60.55% in the last twelve months, as reported by InvestingPro.
Cantor Fitzgerald also noted the pricing strategy for Filspari. The drug is anticipated to be priced at approximately $280,000 per year for FSGS, which is roughly double the price for IgAN due to the double dosage used in FSGS treatments. This pricing strategy is significant because it suggests that blockbuster sales could be achieved with only 4,000 to 5,000 FSGS patients being treated with Filspari. This number represents about 15-30% of the estimated 15,000 to 30,000 addressable FSGS patients in the U.S.
The firm’s analysis indicates confidence in the drug’s approval and a rapid market launch, which could be transformative for Travere Therapeutics. The potential market impact of Filspari is underscored by the lack of current treatment options for patients suffering from FSGS, a disease that can lead to serious complications including kidney failure.
Travere Therapeutics has not yet provided a public response to Cantor Fitzgerald’s reiterated rating or comments regarding the expected approval and launch of Filspari. The company continues to focus on advancing its pipeline of treatments for rare diseases, with Filspari being a key asset in its portfolio. With its next earnings report due in just 3 days, investors seeking deeper insights into Travere’s financial health and growth prospects can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks including TVTX.
In other recent news, Travere Therapeutics has been actively pursuing advancements in its drug portfolio, with a particular focus on Filspari. The company has submitted a supplemental New Drug Application (sNDA) to the U.S. Food and Drug Administration (FDA) for Filspari as a potential treatment for focal segmental glomerulosclerosis (FSGS). This submission is based on promising results from the Phase 3 DUPLEX Study and the Phase 2 DUET Study, demonstrating the drug’s effectiveness in reducing proteinuria and preserving kidney function. Analysts from Cantor Fitzgerald and Canaccord Genuity have maintained positive ratings on Travere Therapeutics, with the latter raising the stock price target to $47. Canaccord Genuity projects significant revenue growth for Filspari, particularly if it gains approval for FSGS, with estimates reaching $537.6 million by 2032. Meanwhile, Citi has also increased its price target for Travere to $35, emphasizing the anticipated regulatory changes that could benefit Filspari’s market adoption. The FDA’s forthcoming decision on the sNDA and potential REMS modifications are pivotal developments for Travere, as they could significantly impact the drug’s uptake and market performance. Investors are closely watching these regulatory milestones, which are expected to shape Travere’s future growth trajectory.
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