Bullish indicating open at $55-$60, IPO prices at $37
On Friday, JMP Securities maintained a positive outlook on Kalvista Pharmaceuticals Inc (NASDAQ:KALV), reiterating a Market Outperform rating with a steady price target of $19.00. This target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $18 to $39. The firm’s analysts provided insights into the hereditary angioedema (HAE) market, indicating that it is currently undervalued by investors.
Kalvista’s focus on the development of treatments for HAE, particularly its oral on-demand drug sebetralstat, has drawn attention due to the significant portion of patients who prefer on-demand treatment options. According to JMP Securities analysts, more than 15% of HAE patients are likely to continue favoring on-demand treatments over prophylactic drugs. The company’s strong financial position, with InvestingPro analysis showing more cash than debt and a healthy current ratio of 6.87, supports its development initiatives.
Despite the use of prophylactic drugs, HAE patients still experience breakthrough attacks, averaging three per year that require on-demand treatment. This need for additional treatment underlines the potential for sebetralstat to make a notable impact in the market.
The anticipation for sebetralstat is further bolstered by medical professionals’ expectations. Two-thirds of the doctors surveyed by JMP Securities predict that the availability of an oral on-demand drug like sebetralstat would lead to more frequent treatment of attacks by patients.
The approval of sebetralstat, which is expected on June 17, could significantly expand the current HAE market, valued at approximately $900 million. Kalvista’s advancements in HAE treatment offer a promising opportunity to meet patient needs and potentially grow its market share in the coming years.
In other recent news, KalVista Pharmaceuticals has been making significant strides in the development of sebetralstat, a potential game-changer in the treatment of hereditary angioedema (HAE). The drug has received an Orphan Drug Designation from Japan’s Ministry of Health, Labour and Welfare and a New Drug Application has been submitted in the country. JMP Securities, TD Cowen, and BofA Securities have initiated coverage on KalVista, assigning a Market Outperform and Buy ratings respectively, with price targets ranging from $19 to $30.
Analysts project that sebetralstat could generate peak sales of over $750 million to $604 million, reflecting confidence in the drug’s market potential. KalVista has also made significant changes to its leadership team, appointing Jeb Ledell as the new Chief Operating Officer, Laurence Reid, Ph.D., to its Board of Directors, and Brian Piekos as the new CFO.
The company has secured over $160 million in capital through financing transactions and equity offerings and announced a public offering and a concurrent private placement of shares, aiming to raise a total of $60 million. These recent developments underscore KalVista’s commitment to advancing its drug development initiatives and providing innovative treatments for diseases with significant unmet medical needs.
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