PTC Therapeutics stock holds Buy rating at Truist despite FDA setback

Published 19/08/2025, 16:50
PTC Therapeutics stock holds Buy rating at Truist despite FDA setback

Investing.com - PTC Therapeutics (NASDAQ:PTCT), a $4.13 billion market cap biopharmaceutical company with impressive revenue growth of 96% over the last twelve months, received a Complete Response Letter (CRL) from the FDA for its vatiquinone application, with regulators requesting an additional well-controlled study for the New Drug Application. According to InvestingPro data, the company maintains strong financials with a healthy current ratio of 3.62.

Truist Securities maintained its Buy rating and $86.00 price target on PTC Therapeutics despite the regulatory setback. The firm characterized the CRL as a "clearing event" ahead of the company’s Sephience launch and upcoming Votoplam regulatory updates, noting that market expectations for vatiquinone’s approval were already low. The stock has shown resilience with a 10% gain in the past week, reflecting investor confidence. InvestingPro analysis reveals 8 additional key insights about PTC (NASDAQ:PTC)’s growth prospects and financial health.

Truist will host PTC management for a virtual fireside chat on Monday, August 25 at 2:00 PM ET to discuss the company’s commercial strategy for Sephience in both U.S. and European markets, including comparisons to previous Kuvan and Palinziq launches and the rationale behind a royalty buyback.

The discussion will also address competitive dynamics in the Huntington’s disease space, particularly with Uniqure’s AMT-130 updates expected in September and a pre-BLA meeting scheduled for Q4 2025. Truist noted that FDA willingness to consider accelerated approval for AMT-130 could positively impact prospects for PTC’s votoplam.

PTC Therapeutics and Novartis (SIX:NOVN) will meet with the FDA in Q4 2025 to determine next steps for votoplam, with additional topics for the upcoming fireside chat including Translarna’s FDA review, Emflaza commercialization, and pipeline development activities. Trading at a P/E ratio of 6.46 and maintaining an "EXCELLENT" financial health score according to InvestingPro, PTC Therapeutics presents an interesting case for investors. Discover comprehensive analysis and detailed metrics in the exclusive Pro Research Report, available to InvestingPro subscribers.

In other recent news, PTC Therapeutics faced a significant regulatory hurdle as the U.S. Food and Drug Administration (FDA) rejected its New Drug Application for vatiquinone, a treatment for Friedreich’s ataxia. The FDA issued a Complete Response Letter, indicating that PTC failed to provide "substantial evidence of efficacy" and requiring an additional "adequate and well-controlled study" before resubmission. Following this setback, BofA Securities lowered its price target for PTC Therapeutics from $82 to $76, while maintaining a Buy rating.

Despite this challenge, other developments show positive sentiment toward PTC Therapeutics. RBC Capital raised its price target to $63 from $60, maintaining an Outperform rating, citing the resilience of PTC’s Translarna drug and the anticipated strong launch of Sephience. Similarly, TD Cowen increased its price target to $56 from $52, maintaining a Hold rating, and highlighted the successful launch of Sephience in the U.S. and European markets. Analysts at TD Cowen believe that Sephience’s launch trajectory will be a critical factor in the company’s near to medium-term stock performance. These recent developments underscore the mixed analyst perspectives on PTC Therapeutics amid regulatory challenges and new product launches.

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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