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On Tuesday, Jefferies, a global investment banking firm, initiated coverage on Akebia Therapeutics (NASDAQ:AKBA) shares with a Buy rating and set a price target of $6.00, representing significant upside from the current price of $1.92. According to InvestingPro data, analyst targets for the stock range from $6.00 to $10.00. Akebia Therapeutics, a commercial-stage biotechnology company with a market capitalization of $454 million, is currently focusing on the treatment of kidney disease.
The company’s lead product, Vafseo, an oral hypoxia-inducible factor prolyl hydroxylase (HIF-PH) inhibitor, has been approved for treating anemia associated with chronic kidney disease (CKD) in dialysis-dependent (DD) patients. The initial launch of Vafseo in the United States has been met with optimism under the Transitional Drug Add-on Payment Adjustment (TDAPA) program. InvestingPro analysis shows the company maintains an impressive gross profit margin of 83.7%, though it’s currently not profitable, with revenue of $160 million in the last twelve months.
Jefferies highlighted the potential for Vafseo to achieve durable sales following the period covered by TDAPA. Looking ahead, Akebia Therapeutics plans to expand its reach by targeting the non-dialysis-dependent (NDD) CKD patient population, with a Phase 3 trial expected to commence in mid-2025. The company’s stock has shown strong momentum, with InvestingPro data revealing a 50% price increase over the past six months. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of Akebia’s growth prospects and financial health.
In addition to Vafseo, Akebia Therapeutics markets Auryxia for use in both DD and NDD CKD patients. However, sales for Auryxia are anticipated to decline due to the loss of exclusivity in 2025. Despite this, the company has several early-stage pipeline products that could offer additional upside potential. InvestingPro’s Financial Health Score rates the company as ’FAIR’, with particularly strong momentum metrics, suggesting potential for future growth despite current profitability challenges.
The analyst’s statement provided an overview of the company’s current position and future prospects: "AKBA is commercial-stage biotech specializing in kidney disease. Lead Vafseo is oral HIF-PH and approved for DD-CKD/anemia, with initial US launch under TDAPA looking encouraging and potential durable sales post TDAPA. The company is expanding to large NDD-CKD, with Phase 3 start in mid’25. The company has a few early pipeline products with upside potential, and markets Auryxia in DD/NDD-CKD, with sales likely declining with loss of exclusivity in ’25. We Initiate at BUY with PT of $6."
In other recent news, Akebia Therapeutics reported its fourth-quarter 2024 earnings, revealing a net loss with earnings per share (EPS) of -$0.10, which missed the forecast of -$0.07. Revenue also fell short of expectations at $46.49 million, compared to the anticipated $49.57 million. Despite this, Akebia is projecting Vafseo’s first-quarter 2025 revenue to be between $10 million and $11 million, exceeding previous consensus estimates. Additionally, Akebia has launched a public stock offering, with Leerink Partners and Piper Sandler & Co. acting as joint bookrunning managers.
Piper Sandler maintained an Overweight rating on Akebia, with a price target of $6.00, citing Vafseo’s strong initial performance and potential in the dialysis market. H.C. Wainwright also reiterated a Buy rating with a $7.50 price target, highlighting Vafseo’s accelerating prescription rates and its strategic positioning in the market. Furthermore, Akebia is preparing to expand Vafseo’s use to non-dialysis patients through the upcoming VALOR trial, set to begin later this year. These developments indicate that analysts from Piper Sandler and H.C. Wainwright remain optimistic about Akebia’s trajectory and the potential growth of Vafseo.
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