SpringWorks stock holds Buy rating, $74 target from H.C. Wainwright

On Monday, H.C. Wainwright maintained a Buy rating on SpringWorks Therapeutics (NASDAQ:SWTX) shares, with a price target of $74.00. According to InvestingPro data, the stock has shown impressive momentum with a 20.67% gain in the past week, while analyst targets range from $63 to $81 per share. The company currently trades at $44.72, suggesting significant potential upside based on analyst consensus. The firm’s analyst, Robert Burns, noted that SpringWorks expects a decision from the European Medicines Agency (EMA) regarding its Marketing Authorization Application (MAA) for nirogacestat, also known as OGSIVEO, in the second quarter of 2025. The treatment is intended for adults with desmoid tumors (DT). The company demonstrates strong financial health with a current ratio of 3.81 and maintains impressive gross profit margins of 93.45%.

The EMA initially validated the MAA for nirogacestat in February 2024, following the outcomes of the Phase 3 DeFi trial. The trial assessed the efficacy of OGSIVEO in patients with DT who have shown disease progression. The study involved 70 participants, with 39% having multifocal disease, two median prior treatments, 26% treatment-naïve, and a significant number having received prior systemic therapy (61%) or radiation therapy (23%). Additionally, 33% of the patients had previously received tyrosine kinase inhibitors (TKI).

Burns’s reiteration of the Buy rating and the 12-month price target comes as SpringWorks anticipates the CHMP, a committee of the EMA, to adopt an opinion on the MAA. This step is crucial for the company as it seeks to expand the availability of its treatment for desmoid tumors across Europe. InvestingPro subscribers can access 8 additional key insights about SpringWorks, including detailed financial health metrics and growth projections. Get the complete analysis with the Pro Research Report, available exclusively to subscribers.

Desmoid tumors are rare growths that can cause significant morbidity due to their aggressive nature and potential to invade surrounding tissues. The positive results from the DeFi trial have paved the way for this regulatory milestone, which could potentially offer a new therapeutic option for patients affected by this condition.

The analyst’s endorsement reflects confidence in the potential market approval and the therapeutic benefits of nirogacestat for patients with desmoid tumors. With a market capitalization of $3.35 billion and solid financial metrics showing more cash than debt on its balance sheet, SpringWorks Therapeutics continues to focus on advancing its pipeline and delivering treatments for rare diseases and cancer.

In other recent news, SpringWorks Therapeutics has seen significant developments. The company received FDA approval for its drug GOMEKLI, intended for treating neurofibromatosis type 1 with symptomatic plexiform neurofibromas, marking a pivotal regulatory milestone. This approval, based on successful Phase 2b trial results, includes a rare pediatric disease priority review voucher, potentially valued at $100 million. Meanwhile, analysts from TD Cowen have increased their price target for SpringWorks to $66, citing positive expectations from GOMEKLI’s approval and its safety profile compared to AstraZeneca’s Koselugo.

Additionally, SpringWorks is in advanced talks with Merck (NSE:PROR) KGaA regarding a potential acquisition, although no binding agreement has been reached yet. Barclays (LON:BARC) has maintained an Overweight rating for SpringWorks, with a $63 price target, highlighting the importance of European Union approval for another drug, Ogsiveo, which could impact the potential acquisition dynamics. Merck KGaA’s interest in acquiring SpringWorks is influenced by the anticipated EU approval and projected peak sales, suggesting a valuation between $6 billion and $7.5 billion. These developments indicate a period of substantial activity and potential growth for SpringWorks Therapeutics.

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