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On Monday, Scotiabank (TSX:BNS) analyst Greg Harrison increased the price target for Disc Medicine (NASDAQ:IRON) shares to $75.00 from the previous $73.00, while maintaining a Sector Outperform rating. According to InvestingPro data, analyst targets for IRON range from $75 to $118, with the stock currently trading at $56.18. The stock has shown significant volatility with a beta of 2.88, reflecting larger price swings compared to the broader market. Harrison’s update follows Disc Medicine’s announcement that it is targeting a New Drug Application (NDA) submission for bitopertin in the treatment of erythropoietic protoporphyria (EPP) in the second half of 2025. With a market capitalization of $1.94 billion, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 21.17, though it remains unprofitable over the last twelve months.
The analyst noted that Disc Medicine is on track to begin the phase 3 APOLLO post-marketing confirmatory trial in mid-2025, which is expected to support a future conversion to full approval. Harrison also pointed out the possibility of a 2026 launch for bitopertin if the FDA grants priority review. The drug’s accelerated approval is seen as largely de-risked, given the clinically meaningful reductions in protoporphyrin IX (PPIX), a surrogate endpoint.
Further de-risking events are anticipated in the second half of 2025 when Disc Medicine plans to release initial data from its ongoing phase trial in myelofibrosis (MF) and multi-dose data from the phase 1b non-dialysis-dependent chronic kidney disease (NDD-CKD) trial. Additionally, the company aims to initiate a phase 2 study of DISC-3405 in polycythemia vera (PV) in the first half of 2025, an area with significant unmet medical needs.
Harrison highlighted that DISC-3405 is expected to offer advantages in safety and convenience due to a less frequent dosing schedule. The company’s recent capital raise has also bolstered its financial position, extending its cash runway into 2028. The price target adjustment to $75 reflects these developments and the outcomes of the fourth quarter and full-year 2024 reporting. For deeper insights into Disc Medicine’s financial health and growth prospects, including additional ProTips and comprehensive valuation metrics, explore the detailed company analysis available on InvestingPro.
In other recent news, Disc Medicine has garnered significant attention from analysts. Stifel has raised its price target for Disc Medicine shares to $94, up from the previous $90, while maintaining a Buy rating. This adjustment comes after Disc Medicine received authorization to submit a new drug application for bitopertin, with analysts estimating an 85% chance of approval and a potential commercial launch in 2026. Meanwhile, TD Cowen has initiated coverage of Disc Medicine with a Buy rating, highlighting the promising outlook for bitopertin in treating erythropoietic protoporphyria (EPP) patients.
The firm also emphasized the potential of Disc Medicine’s treatment 0974 in the myelofibrosis anemia space, estimating a market opportunity nearing $1 billion. Additionally, Stifel noted that forthcoming phase 2 data on Myelofibrosis for DISC-0974 could enhance its position as a leading candidate. Both firms recognized the opportunity within the chronic kidney disease market, with TD Cowen suggesting validation could occur this year. These developments underscore a positive sentiment from analysts regarding Disc Medicine’s future growth prospects.
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