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On Monday, JMP Securities analyst Jonathan Wolleben reaffirmed a Market Outperform rating and a $19.00 price target for Kalvista Pharmaceuticals Inc (NASDAQ:KALV). According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $18 to $39, suggesting significant upside potential from current levels around $11.40. Wolleben expressed optimism following the American Academy of Allergy, Asthma & Immunology (AAAAI) meeting, highlighting the potential of Kalvista’s sebetralstat, marketed as Ekterly. The drug’s branding, which emphasizes early treatment, aligns with the understanding that addressing Hereditary Angioedema (HAE) attacks promptly leads to better patient outcomes.
Wolleben noted that a significant number of patients (57%) choose not to treat every HAE attack, often due to the severity of the attack or the inconvenience of injectable treatments. He believes that an easy-to-use oral medication like sebetralstat could see widespread use and potentially expand the on-demand treatment market for HAE. InvestingPro analysis shows the company maintains a strong financial position with a healthy current ratio of 6.87 and more cash than debt on its balance sheet, providing runway for drug development and commercialization efforts.
The JMP Securities analyst’s confidence is supported by a recent survey of 25 U.S. allergists and immunologists, which indicated that two-thirds of the physicians believe patients would treat more attacks if an oral on-demand medication were available. This survey underpins Wolleben’s conservative estimate of approximately $400 million in worldwide sales at peak for sebetralstat.
Looking ahead, Wolleben recommends Kalvista, especially as the company approaches the PDUFA date on June 17, 2025, for sebetralstat. He assigns a 90% probability of success (POS) to the drug’s approval and anticipates that its early launch could exceed expectations. The potential for premium pricing and rapid adoption is likened to what was observed with the first oral medication in the prophylactic setting for HAE. The stock has shown strong momentum, gaining over 10% in the past week and 34% year-to-date, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
In other recent news, Kalvista Pharmaceuticals Inc. has been making headlines with several key developments. The company received Orphan Drug Designation for its lead drug candidate, sebetralstat, from Japan’s Ministry of Health, Labour and Welfare. This designation supports the company’s New Drug Application submission for sebetralstat in Japan, aiming to introduce the first oral on-demand treatment for hereditary angioedema (HAE) in the country. Additionally, Kalvista’s sebetralstat is under review by the U.S. FDA, with a Prescription Drug User Fee Act goal date set for June 17, 2025.
Analyst firms have shown confidence in Kalvista’s potential, with JMP Securities maintaining a Market Outperform rating and a price target of $19.00, citing the drug’s significance in the HAE treatment landscape. TD Cowen initiated coverage with a Buy rating and a higher price target of $30.00, projecting peak sales of over $750 million for sebetralstat. The analysts emphasize the strong patient preference for an oral treatment option, which could expand the HAE market.
Kalvista’s ongoing clinical trials, including the KONFIDENT phase 3 trial, further support the efficacy and safety of sebetralstat. The company’s focus on addressing the unmet needs in HAE treatment is evident in its strategic efforts to bring this novel therapy to market. These recent developments highlight Kalvista’s progress and potential impact in the pharmaceutical industry.
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