Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
On Thursday, Goldman Sachs made a significant adjustment to the price target for UroGen Pharma (NASDAQ:URGN), reducing it from $16.00 to $3.00, while keeping a Neutral rating on the stock. The stock, currently trading at $4.17, has already fallen nearly 58% in the past week. According to InvestingPro data, this decline has pushed the company’s market capitalization down to $192 million. The decision follows the recent ODAC (Oncologic Drugs Advisory Committee) vote, which expressed skepticism regarding the benefit-risk profile of UroGen Pharma’s product UGN-102.
The ODAC’s narrow vote, with 5 against and 4 in favor, concluded that the overall benefit-risk of UGN-102 in treating low-grade intermediate-risk non-muscle invasive bladder cancer (LG-IR-NMIBC) was not favorable. This outcome has cast doubt on the likelihood of UGN-102 receiving approval for a broad recurrent LG-IR-NMIBC indication. Despite these challenges, InvestingPro data shows the company maintains strong gross profit margins of nearly 90% and a healthy current ratio of 5.65, indicating solid short-term liquidity.
Goldman Sachs’ analyst noted that, given the results of the ODAC meeting, the most optimistic scenario for UGN-102 would now be a limited approval for patients who are ineligible for surgery or who have cardiovascular risks or other comorbidities, possibly accompanied by a post-market surveillance program.
The substantial reduction in the price target to $3 reflects these developments and the challenges UroGen Pharma may face in securing broader approval for UGN-102. The company’s path forward looks increasingly difficult, as the ODAC’s decision is a crucial factor in the FDA’s consideration of new drug approvals.
In other recent news, UroGen Pharma reported its Q1 2025 earnings, revealing a revenue of $20.25 million, which fell short of the projected $22.5 million. The company also missed its earnings per share forecast, reporting -$0.92 against an expected -$0.79. Despite these financial results, UroGen Pharma is preparing for the potential launch of its bladder cancer drug, UGN-102, in July 2025. The FDA’s Oncologic Drugs Advisory Committee recently delivered a split vote on the drug’s benefit/risk profile, with concerns raised about its efficacy compared to current treatments. Analyst Leland Gershell from Oppenheimer maintained an Outperform rating on UroGen Pharma, while acknowledging the FDA’s concerns. Meanwhile, Tara Bancroft from TD Cowen expressed confidence in a positive advisory panel vote. UroGen’s management remains optimistic about the drug’s approval, emphasizing its potential to provide a non-surgical treatment option for bladder cancer patients.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.