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Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating and $89.00 price target on Disc Medicine (NASDAQ:IRON), currently trading at $58.52 with a market capitalization of $2.02 billion, following Bristol Myers Squibb’s (NYSE:BMY) announcement regarding its luspatercept trial results. According to InvestingPro data, IRON shows strong momentum with notable returns in recent months, though investors should note its beta of 2.5 indicates higher volatility than the broader market.
Bristol Myers Squibb reported that luspatercept narrowly missed its primary endpoint in transfusion-dependent myelofibrosis patients on concomitant JAKi therapy, with a p-value of 0.0674. Despite this miss, the company cited numerically and clinically meaningful improvements in red blood cell transfusion, consistent with previous Phase 2 results.
BMY also noted that luspatercept showed clinically meaningful benefits in secondary endpoints, including patients achieving at least a 50% reduction in RBC transfusion burden and those reaching hemoglobin level increases while remaining transfusion independent. The company plans to continue discussions with FDA and EMA regarding potential marketing approval.
Disc Medicine is currently conducting its own open-label Phase 2 trial (RALLY-MF) for DISC-0974 in myelofibrosis with anemia, with interim results expected in the second half of 2025. Unlike luspatercept, which promotes late-stage red blood cell maturation, DISC-0974 works by suppressing hepcidin to increase iron availability and red blood cell production.
Raymond James notes that DISC-0974 has demonstrated "strong and consistent clinical benefit across all TD status so far" in a small open-label population, though the firm awaits further data before drawing conclusions. The analyst’s model assumes a 40% probability of success for DISC-0974 in myelofibrosis-anemia, with estimated peak sales of approximately $450 million. InvestingPro analysis shows the company maintains a "GOOD" Financial Health score, with analyst targets ranging from $75 to $132 per share. The company’s strong balance sheet, with more cash than debt and a high current ratio of 37.65, provides financial flexibility for its clinical development programs.Want deeper insights? Access the comprehensive Pro Research Report for DISC Medicine, along with 12 additional ProTips and extensive financial metrics available on InvestingPro.
In other recent news, Disc Medicine has appointed Nadim Ahmed to its Board of Directors. Ahmed, who currently serves as the CEO of Cullinan Therapeutics, brings over 25 years of experience in drug development and commercialization. In addition to this appointment, Morgan Stanley (NYSE:MS) has initiated coverage on Disc Medicine with an Overweight rating, citing the potential for bitopertin to reach the market sooner than expected, with projected U.S. peak sales of approximately $1 billion. H.C. Wainwright has reaffirmed its Buy rating with a $118 price target, emphasizing the company’s progress with bitopertin for Erythropoietic Protoporphyria (EPP) and the potential of DISC-974 in treating myelofibrosis. BMO Capital has also reiterated its Outperform rating, highlighting the company’s progress on its pipeline and the bitopertin NDA submission, which is on track for late 2025. These developments indicate a positive outlook from various analysts regarding Disc Medicine’s strategic advancements and pipeline potential.
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