Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Friday, Bernstein analysts adjusted their outlook on Ionis Pharmaceuticals (NASDAQ:IONS), a company listed on NASDAQ under the ticker IONS. The firm’s price target for Ionis was reduced to $43.00 from the previous $51.00. Despite this change, the analysts maintained a Market Perform rating for the stock. Currently trading at $32.69, the stock has declined about 25% over the past year and sits near its 52-week low of $30.23. According to InvestingPro data, analyst targets for the stock range from $37 to $78.
Bernstein’s assessment followed Ionis Pharmaceuticals’ recent financial results, which surpassed both Bernstein’s and consensus estimates. The company reported total revenue of $705 million, topping expectations by 13% and 15%, respectively. Moreover, the earnings per share (EPS) of ($0.43) outperformed Bernstein’s and consensus projections by 51% and 53%, respectively. The strong R&D revenue was a significant contributor to these better-than-expected figures.
The analysts highlighted Ionis’ drug Wainua, which has been showing promise, along with the anticipation for the SHTG readout. However, Bernstein expressed skepticism regarding the potential impact of AP risk reduction, a factor they believe is not fully accounted for in the current stock price.
The decision to lower the price target was also influenced by adjustments in Bernstein’s model. Several assets deemed more speculative, such as bepirovirsen and AGT, were removed, and timelines for other drugs like FBLRx and pelacarsen were pushed back to align with recent communications from partners.
Bernstein’s valuation approach remains consistent, applying a 5x multiple on Ionis’ projected sales for 2028, which is then discounted back to the present. Despite the price target reduction, the Market Perform rating suggests that the analysts see the stock as fairly valued based on current information.
In other recent news, Ionis Pharmaceuticals reported a robust fourth-quarter 2024 financial performance, surpassing earnings forecasts with an EPS of -0.66 against the expected -1.11, and revenue reaching $227 million compared to the anticipated $135.58 million. The company has also been active in clinical developments, presenting promising data for donidalorsen, a drug under FDA review for hereditary angioedema, with a target action date set for August 21, 2025. Meanwhile, Ionis is progressing with its pipeline, including a Phase 3 trial for ION582 in Angelman syndrome, scheduled to start in the first half of 2025.
Analyst firms have adjusted their outlook on Ionis Pharmaceuticals. Raymond (NSE:RYMD) James maintained a Strong Buy rating but slightly reduced the price target to $60, while Stifel cut the target to $38, maintaining a Hold rating. These adjustments reflect Ionis’s recent earnings and ongoing clinical trials. The company’s royalty revenues from Wainua for ATTR-PN met projections, although slightly below expectations, with $10 million earned in the last quarter.
Ionis is also preparing for multiple product launches, including Tryngolza for familial chylomicronemia syndrome and Olezarsen for severe hypertriglyceridemia, with the latter expected to have Phase 3 data readouts in the second half of 2025. The company continues to focus on expanding its commercial operations and securing partnerships outside the U.S. for its products. These developments indicate Ionis’s strategic direction and potential growth in the biotechnology sector.
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