Bullish indicating open at $55-$60, IPO prices at $37
On Friday, JMP Securities initiated coverage on Kalvista Pharmaceuticals Inc (NASDAQ: KALV), assigning a Market Outperform rating and setting a price target of $19.00. Currently trading at $8.77, the stock has significant upside potential according to analysts, with targets ranging from $18 to $39. The firm’s analysts highlighted the potential of Kalvista’s leading drug candidate, sebetralstat, as a significant advancement in the treatment of hereditary angioedema (HAE), a rare genetic condition.
Kalvista’s sebetralstat is a small-molecule plasma kallikrein inhibitor and could become the first oral on-demand therapy for HAE. This positions it to potentially capture a considerable portion of the market currently dominated by injectable treatments. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 6.87, providing runway for drug development. JMP Securities analysts underscored the importance of ease and convenience in administration as a key factor in their positive outlook on the drug’s market prospects.
The analysts noted that HAE medications generated approximately $2.8 billion in sales in 2023 and projected growth to over $6 billion by 2030. This forecast is based on the expectation that more patients will choose newer treatments that are more efficacious and easier to administer. While investor attention has traditionally been concentrated on prophylactic treatments for HAE, the on-demand segment, which stabilized at around $900 million in sales in 2023, is anticipated to expand significantly. This growth is partly attributed to the introduction of Kalvista’s sebetralstat.
The JMP Securities team believes that Kalvista Pharmaceuticals is well-positioned to benefit from the evolving HAE treatment landscape. Their $19 price target reflects a risk-adjusted, discounted cash flow (DCF) analysis, suggesting confidence in the long-term value of the company’s drug development pipeline. While InvestingPro analysis suggests the stock is currently fairly valued, subscribers can access 7 additional ProTips and comprehensive financial metrics to make more informed investment decisions.
In other recent news, KalVista Pharmaceuticals (NASDAQ:KALV) has received Orphan Drug Designation for sebetralstat from Japan’s Ministry of Health, Labour and Welfare. The company has also submitted a New Drug Application for the treatment in Japan, marking a significant step towards offering the first oral on-demand treatment for hereditary angioedema (HAE) in the country. TD Cowen and BofA Securities have assigned a Buy rating to KalVista’s stock, projecting that sebetralstat could achieve over $750 million and $604 million in peak sales respectively.
KalVista has also appointed Jeb Ledell as the new Chief Operating Officer, Laurence Reid, Ph.D., to its Board of Directors, and Brian Piekos as the new CFO. These appointments come as the company prepares for the global launch of sebetralstat, anticipated in the second half of 2025.
Additionally, KalVista has secured over $160 million in capital through financing transactions and equity offerings, and has announced a public offering and a concurrent private placement of shares, aiming to raise a total of $60 million. These are recent developments in the company’s ongoing efforts to provide innovative treatments for diseases with significant unmet medical needs.
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