PTC Therapeutics stock gets Buy rating from UBS ahead of FDA decision

Published 14/07/2025, 15:44
PTC Therapeutics stock gets Buy rating from UBS ahead of FDA decision

Investing.com - UBS has reiterated a Buy rating and $71.00 price target on PTC Therapeutics (NASDAQ:PTCT), currently trading at $49.85, ahead of the company’s upcoming FDA decision for sepiapterin, a treatment for phenylketonuria (PKU). The company, with a market capitalization of $3.94 billion, has demonstrated strong financial performance with 91% revenue growth over the last twelve months. According to InvestingPro analysis, PTCT shows GREAT overall financial health with multiple positive indicators.

The investment bank’s analysis follows discussions with a medical geneticist who treats approximately 320 PKU patients and provided insights on the treatment landscape, including current options like low-phenylalanine diet, Kuvan/sapropterin, and Palynziq. Trading at a P/E ratio of 6.42, PTCT’s valuation metrics and detailed analysis are available through InvestingPro’s comprehensive research reports.

The medical expert indicated plans to switch the vast majority of their approximately 100 Kuvan/sapropterin patients to sepiapterin within the first year of availability, suggesting strong launch potential for the drug, which was recently approved in Europe as Sephience.

UBS noted the high unmet need in the PKU market, as most patients on current therapies still require dietary restrictions, though the expert expressed some caution about sepiapterin’s effectiveness in classical PKU and Kuvan/sapropterin non-responders.

The FDA’s decision on sepiapterin is expected by July 29, 2025, with UBS maintaining its positive outlook on PTC Therapeutics based on the potential market opportunity. Investors should note that PTCT’s next earnings report is scheduled for July 31, 2025, just days after the FDA decision, with analyst consensus remaining bullish on the company’s prospects.

In other recent news, PTC Therapeutics has received significant attention following the European Union’s approval of its drug Sephience. Evercore ISI reiterated its Outperform rating for the company, suggesting that this approval could pave the way for further market entries in Japan and Brazil. Meanwhile, Truist Securities initiated coverage with a Buy rating, highlighting potential launches of sepiapterin for phenylketonuria and vatiquinone for Friedreich’s ataxia as key drivers for the company, projecting combined peak sales exceeding $2 billion. RBC Capital also adjusted its price target for PTC Therapeutics to $60, maintaining an Outperform rating, and noted favorable feedback from insurers regarding sepiapterin’s accessibility. Citi analysts maintained a Neutral rating and a $40 price target, citing the need for more data on PTC518 for Huntington’s disease to meet FDA accelerated approval criteria. RBC Capital echoed this cautious stance, noting that while recent data may not suffice for accelerated approval, the FDA’s flexibility could benefit PTC (NASDAQ:PTC)’s ’518 program. The analysts also pointed out PTC Therapeutics’ strong cash position of approximately $2 billion, supporting its valuation. These developments collectively highlight a period of strategic growth and potential for PTC Therapeutics in the biopharmaceutical sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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