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On Tuesday, RBC Capital analysts reiterated their Outperform rating for Ascendis Pharma stock (NASDAQ: NASDAQ:ASND), maintaining a price target of $210.00. Currently trading at $173, the stock has shown remarkable momentum, gaining over 33% in the past six months. According to InvestingPro data, analyst targets range from $194 to $290, with a strong consensus recommendation of 1.2 (Strong Buy). The affirmation follows a survey conducted by RBC, which suggests steady growth for Ascendis Pharma’s drug, Yorvipath, in the second quarter of 2025.
The survey, involving 35 U.S. endocrinologists across 23 states, found no evidence of a slowdown in Yorvipath’s uptake. Despite concerns over the lack of reported April figures, the survey indicated that 1,669 new prescriptions are expected in the second quarter, with 77% of prior authorizations approved. This growth trajectory aligns with the company’s impressive 85.3% gross margin and projected 67% revenue growth for FY2025, according to InvestingPro analysis. The feedback highlighted the drug’s convenience and reduced pill burden, with most patients able to stop using calcitriol and calcium.
Further insights from the survey revealed that the majority of doctors are prescribing Yorvipath beyond their most severe patients, indicating a potentially larger target market than initially anticipated. This suggests a significant opportunity for growth, with doctors envisioning 45% of their patients on the therapy within five years, compared to the initial estimate of 10-15%.
The analysts expressed optimism about Yorvipath’s potential, citing its first-mover advantage and a clear path to profitability with minimal competition expected in the near future. The recent deal with Novo Nordisk (NYSE:NVO) was also noted as a strategic interest that supports this outlook. While the company’s $10.45 billion market capitalization reflects significant investor confidence, InvestingPro analysis indicates the stock is trading slightly above its Fair Value. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better evaluate this growth story.
In other recent news, Ascendis Pharma has announced several important developments. The company reported positive interim results from its Phase 2 COACH trial, which is evaluating a combination treatment for children with achondroplasia. This trial demonstrated significant benefits in annualized growth velocity, with treatment-naive patients seeing an increase of 4.23 cm/year. Ascendis Pharma plans to release 52-week data from this trial in the fourth quarter, which will inform the design of a forthcoming Phase 3 trial. The U.S. Food and Drug Administration (FDA) has accepted Ascendis Pharma’s New Drug Application for TransCon CNP with a priority review, setting a goal date for November 30, 2025. This priority review status is reserved for treatments that may offer significant improvements in serious conditions. BofA Securities has increased its price target for Ascendis Pharma to $216 and maintained a "Buy" rating, reflecting optimism about the company’s prospects. Canaccord Genuity, however, maintained a "Hold" rating with an $84 target, noting concerns about the durability and potential side effects of the treatment. These recent developments underscore Ascendis Pharma’s ongoing efforts to address medical needs in achondroplasia treatment.
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