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Investing.com - Raymond James has reiterated its Strong Buy rating and $108.00 price target on Disc Medicine (NASDAQ:IRON), citing the potential of DISC-0974 to become the company’s next pipeline growth driver. Currently trading at $86.13, IRON shares have delivered impressive returns of 91.32% over the past year, with analysts maintaining a Strong Buy consensus and targets ranging from $85 to $153, according to InvestingPro data.
The firm believes DISC-0974 could follow the expected approval and launch of bitopertin in EPP/XLP by early 2026, with opportunities in anemia of myelofibrosis (MF) and other chronic disease settings. Raymond James currently models DISC-0974 sales in MF anemia at approximately $400 million by 2035, with an estimated 2028 launch. Despite its $2.99 billion market capitalization, InvestingPro data shows IRON is not yet profitable, with analysts forecasting an EPS of -$5.67 for fiscal year 2025.
The firm’s analysis yields a net present value of $5 per share for the DISC-0974 program, based on conservative assumptions including a 40% probability of success and a competitive market environment. Raymond James suggests substantial room for NPV expansion exists as the program progresses. From a financial health perspective, InvestingPro highlights that IRON holds more cash than debt on its balance sheet, with a remarkable current ratio of 32.11, indicating strong liquidity to fund its pipeline development.
The investment firm is previewing the upcoming DISC-0974 RALLY-MF Phase 2 interim update, which is expected to be presented at ASH 2025, pending poster acceptance. This data could potentially support a broad opportunity in anemia of myelofibrosis, including both transfusion-dependent and non-transfusion-dependent patients.
In an optimistic scenario, Raymond James believes DISC-0974 peak sales could approach $1 billion or more in myelofibrosis alone, with a fully de-risked program NPV of $20-30+ per share, representing a $15-25 per share increase from their current model.
In other recent news, Disc Medicine, Inc. announced the pricing of an upsized public offering valued at approximately $250 million, involving the sale of 2,619,049 shares of common stock and pre-funded warrants. This offering follows the company’s earlier announcement of a $220 million stock offering intended to support the commercialization of bitopertin for erythropoietic protoporphyria and X-linked protoporphyria, as well as to fund ongoing research and development. Additionally, Disc Medicine has submitted a New Drug Application for bitopertin in erythropoietic protoporphyria, receiving a priority review voucher from the FDA, which could expedite the approval process to 1-2 months.
Wells Fargo has reiterated its Overweight rating on Disc Medicine, maintaining a price target of $91.00, reflecting continued confidence in the company’s prospects. The FDA’s priority voucher is a significant development, positioning Disc Medicine among the initial recipients recognized for addressing major national priorities or unmet medical needs. This voucher could potentially accelerate the approval timeline for bitopertin, with possible commercialization in late 2025 or early 2026. These developments highlight Disc Medicine’s strategic efforts in advancing its clinical programs and securing financial resources for future growth.
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