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Monday, JMP Securities reaffirmed its Market Outperform rating and $74.00 price target for Mirum Pharmaceuticals (NASDAQ:MIRM) shares. The firm’s analyst, Jonathan Wolleben, maintained a positive outlook on the company’s prospects, particularly focusing on Ctexli, Mirum’s therapy for cerebrotendinous xanthomatosis (CTX). Currently trading at $52.45, MIRM has demonstrated remarkable momentum with an 88.6% return over the past year. According to InvestingPro data, the stock is trading near its 52-week high of $54.23, with analysts maintaining a strong buy consensus.
CTX, a rare autosomal recessive disorder, affects approximately 1,000 to 2,000 patients in the United States. Despite this, the disease is significantly under-diagnosed, with an estimated diagnosis rate of merely 10%. CTX is marked by a defect in the enzyme responsible for converting cholesterol to the bile acid known as chenodeoxycholic acid (CDCA). This defect leads to the buildup of toxic substances like colestinol and bile alcohols in the liver. With a market capitalization of $2.53 billion and impressive revenue growth of 112% in the last twelve months, Mirum appears well-positioned to capitalize on this market opportunity. Dive deeper into Mirum’s financial health and growth prospects with InvestingPro, which offers comprehensive analysis and 12 additional ProTips for informed investment decisions.
Ctexli, which is already approved under the brand name Chenodal for the treatment of radiolucent gallstones, also holds FDA medical necessity status for CTX. This status is crucial as it contributes to the majority of the drug’s revenues. JMP Securities’ confidence in Ctexli is reflected in the maintained price target, which was supported by the strength of the Phase 3 RESTORE data. The company maintains a healthy financial position with a current ratio of 3.34, indicating strong liquidity to support its commercial initiatives.
Wolleben’s commentary highlighted that increasing the probability of success (POS) assigned to Ctexli from 90% to 100% did not influence the firm’s $74 price target. This adjustment in POS underscores JMP Securities’ belief in the drug’s strong clinical data and its potential market impact.
The reaffirmation of the price target and rating for Mirum Pharmaceuticals by JMP Securities underscores the firm’s confidence in the company’s drug and its potential to address the needs of CTX patients effectively.
In other recent news, Mirum Pharmaceuticals announced its preliminary 2024 financial results, reporting net product sales of approximately $336 million, surpassing its sales guidance. The company has set an optimistic sales projection for 2025, aiming for global net product sales between $420 million and $435 million. Mirum’s financial position remains strong, with a year-end cash balance of about $287 million and positive cash flow from operations in the third quarter of 2024. The company has expanded its drug portfolio, including a New Drug Application for chenodiol and acquiring rights to MRM-3379 for Fragile X syndrome. Regulatory milestones include the FDA’s approval of LIVMARLI for PFIC patients and the upcoming PDUFA date for chenodiol in March 2025. Mirum’s global commercial reach now extends to 30 countries, with successful product launches in major European markets. The company also announced the appointment of Dr. Joanne Quan as Chief Medical (TASE:BLWV) Officer, strengthening its executive team. These developments highlight Mirum’s ongoing strategy to enhance its presence in the treatment of rare diseases.
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