PTC Therapeutics stock price target lowered to $63 at Jefferies on FDA rejection

Investing.com - Jefferies lowered its price target on PTC Therapeutics (NASDAQ:PTCT) to $63.00 from $64.00 while maintaining a Buy rating after the company received a Complete Response Letter (CRL) from the FDA. Despite the news, InvestingPro data shows the stock has demonstrated resilience with a 10% gain over the past week and maintains strong financials with a healthy current ratio of 3.62.

The CRL rejected PTC (NASDAQ:PTC)’s application for vatiquinone, a treatment for Friedreich’s ataxia (FA), following mixed Phase III clinical trial results.

Jefferies noted that market expectations for approval were already low heading into the PDUFA date, making the rejection unsurprising to investors and analysts.

The research firm reduced its probability of success (PoS) for the FA treatment from 30% to 5% following the regulatory setback, which contributed to the slight price target reduction.

Jefferies characterized the FDA rejection as a "clearing event" that allows investors to refocus on PTC’s phenylketonuria (PKU) treatment launch and the company’s development pathway in Huntington’s disease (HD).

In other recent news, PTC Therapeutics received a Complete Response Letter from the U.S. Food and Drug Administration regarding its New Drug Application for vatiquinone, a treatment for Friedreich’s ataxia. The FDA requested an additional well-controlled study, stating that substantial evidence of efficacy was not demonstrated. Despite this setback, Truist Securities maintained its Buy rating on PTC Therapeutics, viewing the regulatory event as a clearing step before the launch of Sephience. Meanwhile, BofA Securities also kept a Buy rating but lowered its price target to $76.00 from $82.00 following the FDA’s decision. RBC Capital, on the other hand, raised its price target to $63.00, citing the strength of PTC’s Translarna drug, which is expected to support the company’s upcoming initiatives. These developments indicate varying analyst perspectives on PTC Therapeutics’ future performance.

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