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On Thursday, H.C. Wainwright adjusted its outlook on Eton Pharmaceuticals (NASDAQ:ETON), increasing the price target to $35.00 from the previous $33.00 while maintaining a Buy rating on the stock. The company’s stock has shown remarkable performance, delivering a 442.7% return over the past year and currently trading near its 52-week high of $21.48. According to InvestingPro analysis, the stock appears to be approaching Fair Value levels, with analyst targets ranging from $26 to $33. This adjustment follows the recent announcement from Eton Pharmaceuticals on May 28 regarding the FDA approval of their drug Khindivi (ET-400), intended for use as a replacement therapy in pediatric patients aged five and older with adrenal insufficiency.
The newly approved Khindivi is an oral formulation of hydrocortisone designed to improve upon the granular texture of the currently available ALKINDI SPRINKLE. With plans to launch Khindivi starting the week of June 2, Eton Pharmaceuticals is on track to have introduced three new drugs in the first half of 2025, following the January relaunch of Increlex and the March introduction of GALZIN. The company’s commercial momentum is reflected in its strong revenue growth of 40.88% over the last twelve months, with current revenue standing at $48.33 million.
Analysts at H.C. Wainwright have expressed confidence in Eton’s commercial execution capabilities, suggesting that these new drug additions could significantly impact the company’s revenue in 2025. The firm projects total revenues for Eton Pharmaceuticals to reach $74 million in 2025, marking a substantial year-over-year growth of 91% from the $39 million reported in 2024.
The positive adjustment in the price target reflects several changes in the firm’s forecast, including an increase in the probability of Khindivi’s launch to 100% from the previously estimated 90%, accounting for the drug’s launch in June rather than the beginning of the second quarter of 2025, as initially expected. InvestingPro data reveals that analysts are optimistic about the company’s prospects, with expectations of profitability this year despite current negative earnings. For deeper insights into Eton’s financial health and growth potential, including 15+ additional ProTips and comprehensive valuation metrics, explore the full Pro Research Report available on InvestingPro. Additionally, peak penetration rates for Khindivi have been raised to 60% from the earlier 40%, given the anticipated ease of administration for patients. These factors contribute to the revised 12-month price target of $35 per diluted share, indicating a bullish outlook for Eton Pharmaceuticals’ stock.
In other recent news, Eton Pharmaceuticals has reported a strong first quarter for 2025, surpassing revenue estimates with a total of $17.3 million, a 117% increase from the previous year. This growth was primarily driven by product sales, which contributed $14 million, and licensing revenue. Despite a net loss of $1.6 million, the company maintains a robust cash position with $17.4 million on hand. Eton Pharmaceuticals has also received FDA approval for KHINDIVI™, a hydrocortisone oral solution for children with adrenocortical insufficiency, marking a significant development in pediatric care.
The company projects peak annual sales for KHINDIVI and ALKINDI SPRINKLE® to exceed $50 million. Eton Pharmaceuticals is targeting a $100 million revenue run rate in the near term, with expectations of a 70% gross margin in 2025, and has plans for multiple product launches between 2025 and 2027. Analyst firm B. Riley noted Eton’s performance, highlighting the company’s strong growth trajectory. Eton’s CEO, Sean Brynjelsen, expressed optimism about the company’s future, emphasizing the momentum from recent product acquisitions and pipeline advancements.
Additionally, the Eton Cares Program will support patients with prescription fulfillment and financial assistance. The company continues to focus on the ultra-rare disease market and is preparing for the launch of ET400, which is expected to drive further revenue growth.
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