TD Cowen reiterates Buy rating on Agios Pharma stock amid safety concerns

Published 05/08/2025, 17:36
TD Cowen reiterates Buy rating on Agios Pharma stock amid safety concerns

Investing.com - TD Cowen has reiterated its Buy rating on Agios Pharmaceuticals (NASDAQ:AGIO) stock, currently trading at $36.03 with a market capitalization of $2.09 billion, despite recent attention around safety reports for the company’s drug mitapivat.

The firm addressed concerns about FDA Adverse Event Reporting System (FAERS) reports of deaths in patients taking mitapivat, stating that details of the cases do not support any link between these events and the medication. According to InvestingPro data, the company maintains strong financial health with more cash than debt on its balance sheet.

TD Cowen maintains its belief that mitapivat will receive a broad thalassemia label in the United States and achieve success in sickle cell disease, with Phase 3 data expected in late 2025.

The firm highlighted that Saudi Arabia has issued a broad thalassemia approval for mitapivat, describing it as a "potentially important commercial market" for Agios.

TD Cowen continues to position Agios Pharmaceuticals as its "top pick" among covered stocks, suggesting confidence in the company’s prospects despite the recent safety concerns.

In other recent news, Agios Pharmaceuticals reported its Q2 2025 earnings, revealing a larger-than-expected loss per share, with an EPS of -$1.93, missing the forecast of -$1.81. However, the company saw a notable revenue increase, reaching $12.5 million and surpassing expectations of $9.54 million. In a separate development, BofA Securities raised its price target for Agios Pharmaceuticals to $52 from $50, maintaining a Buy rating on the stock. This adjustment follows recent volatility in Agios shares due to reports of patient deaths in the FDA’s adverse events reporting system, which the company later clarified. Additionally, Agios addressed an analyst report concerning safety data for its treatment PYRUKYND, used for hemolytic anemia in adults with pyruvate kinase deficiency. The report highlighted four patient cases, three of which had been previously reported to both Agios and the FDA. Agios Pharmaceuticals continues to engage with analysts and the FDA to ensure transparency regarding PYRUKYND’s safety data. These developments reflect the company’s ongoing efforts to manage both financial performance and product safety perceptions.

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