PTC Therapeutics stock rises as UBS raises price target following FDA approval

Published 29/07/2025, 16:36
PTC Therapeutics stock rises as UBS raises price target following FDA approval

Investing.com - PTC Therapeutics (NASDAQ:PTCT), a $3.89 billion market cap biotech company with a GREAT financial health rating according to InvestingPro, received a price target increase from UBS to $80.00 from $71.00 on Tuesday, while the firm maintained its Buy rating on the stock.

The price target adjustment follows the FDA’s approval of PTC (NASDAQ:PTC)’s Sephience (sepiapterin) for the treatment of PKU in adults and children aged one month and older. The approval, announced Monday, specifies the drug is for patients with sepiapterin-responsive PKU in conjunction with a phenylalanine-restricted diet. This development comes as PTC demonstrates strong momentum, with revenue growing 91% in the last twelve months.

PTC Therapeutics has set Sephience’s wholesale acquisition cost (WAC) at $41,000 per month based on an average patient weight of 45kg, which equates to approximately $500,000 annually. This pricing aligns with the company’s previous guidance and is comparable to existing PKU treatment Palynziq.

The company expects to begin shipping Sephience to U.S. patients in August and anticipates an initial surge in demand. PTC management reported that over 1,000 patients are already enrolled in the company’s Reimagine PKU patient program.

UBS noted that while some investors might view the pricing as high, it is consistent with PTC’s previous commentary on the drug’s expected cost structure. Trading at a P/E ratio of 6.45, InvestingPro analysis shows the stock is currently fairly valued. Investors should note that PTC will report its next earnings in 9 days, on August 7, 2025.

In other recent news, PTC Therapeutics has received approval from the U.S. Food and Drug Administration for its drug Sephience (sepiapterin) to treat phenylketonuria (PKU). The approval includes broad labeling for treating hyperphenylalaninemia in both adult and pediatric patients, starting from one month of age. This development allows the company to target all disease subtypes across a wide age range, provided the medication is used with a phenylalanine-restricted diet. Additionally, UBS reiterated a Buy rating and set a $71.00 price target on PTC Therapeutics, following discussions with a medical geneticist about the treatment landscape for PKU. Evercore ISI also maintained its Outperform rating on the company after the European Union approved Sephience, marking a significant milestone for PTC Therapeutics. Truist Securities initiated coverage on PTC Therapeutics with a Buy rating and an $80 price target, citing the potential launches of two drugs as key catalysts for the company. These drugs, including sepiapterin for PKU, have PDUFA dates set for 2025.

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