Ultragenyx Pharma stock rating initiated at Buy by H.C. Wainwright

Investing.com - H.C. Wainwright assumed coverage on Ultragenyx Pharma (NASDAQ:RARE) with a Buy rating and a price target of $80.00 on Monday. The stock currently trades at $27.34, near its 52-week low of $25.81, with analyst targets ranging from $34 to $136.

The research firm cited Ultragenyx shares as an attractive opportunity at current levels, noting the stock is down 35% year-to-date compared to only a 2.7% decline in the benchmark XBI index. Despite the decline, InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.4 and impressive revenue growth of 33.46% over the last twelve months.

H.C. Wainwright attributed the recent share price pressure to investor disappointment following the interim readout from the pivotal Orbit trial of UX143 (setrusumab), which is being developed for osteogenesis imperfecta treatment. The company announced earlier this month that the trial would progress toward a final analysis with results expected around year-end.

The firm believes the nearly 30% drop in share price appears unwarranted, emphasizing that the Orbit trial has not failed and the final top-line result should deliver favorable data, potentially leading to U.S. regulatory submission next year.

H.C. Wainwright also highlighted Ultragenyx’s current commercial portfolio, particularly its CRYSVITA franchise, which the firm believes could achieve peak annual sales exceeding $3 billion and should support a fair value of approximately $35-40 per share without factoring in the pipeline. For deeper insights into Ultragenyx’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis including 10 additional ProTips and detailed financial metrics in our exclusive Pro Research Report.

In other recent news, Ultragenyx Pharmaceutical (TADAWUL:2070) Inc. announced that Health Canada has extended the approval of Evkeeza to treat homozygous familial hypercholesterolemia (HoFH) in children as young as six months old. This approval allows the medication to be used alongside diet and other LDL-C lowering therapies for younger patients. Previously, Evkeeza was approved in Canada for patients aged five years and older. In another development, the U.S. Food and Drug Administration (FDA) issued a Complete Response Letter for Ultragenyx’s Biologics License Application for UX111, a gene therapy for Sanfilippo syndrome type A. The FDA’s letter requested additional information and improvements related to chemistry, manufacturing, and controls, as well as observations from recent facility inspections. Ultragenyx believes these issues are related to facilities and processes rather than the quality of the product. Despite this setback, TD Cowen has reiterated its Buy rating and $86.00 price target on Ultragenyx, maintaining confidence in the company’s setrusumab treatment despite missing an interim analysis endpoint.

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