On Tuesday, H.C. Wainwright updated its outlook on Ultragenyx Pharma (NASDAQ: RARE) shares, raising the stock's price target to $95 from $82 while maintaining a Buy rating. The firm's analyst cited the company's impressive third-quarter financial results, which were disclosed on Monday (NASDAQ:MNDY), as the basis for the adjustment.
Ultragenyx Pharma announced a significant 42.3% increase in total revenue for the third quarter of 2024, reaching $139.5 million compared to the same period in the previous year. The company's revenue growth was largely driven by its Crysvita product, which generated $97.8 million in total, including $35.6 million in product sales from Latin America and Turkey, marking an 85.4% increase from the third quarter of 2023.
Other products also showed strong performance, with Dojolvi's revenue rising to $21.4 million, a 29.1% growth from the third quarter of 2023. Mepsevii sales also jumped by 70.7% to $9.6 million in the same period. Moreover, Evkeeza reached a record high with $10.7 million in sales for the third quarter of 2024, with management attributing the surge to expanding demand in new ex-U.S. markets, including Japan and various EU countries.
Looking forward, Ultragenyx's management confirmed their full-year 2024 guidance, expecting total revenue between $530 million and $550 million. They anticipate Crysvita revenue to hit the upper end of the $375 million to $400 million range and Dojolvi revenue to fall within the $75 million to $80 million range.
The analyst from H.C. Wainwright expressed confidence in Ultragenyx's trajectory, highlighting the ongoing upward trend in sales for all marketed products and no indications of a slowdown in the near-term. With a decrease in operating cash use year-over-year, the analyst supports the management's target for profitability by 2026 and justifies the increased price target to $95 based on revisions to their financial model.
In other recent news, Ultragenyx Pharmaceutical (NASDAQ:RARE) Inc. has reported several significant developments. The company's Q3 sales surpassed expectations, reaching $139.5 million, as noted by Leerink Partners. In addition, Ultragenyx maintains a robust financial position, ending the quarter with $825 million in cash, cash equivalents, and marketable debt securities.
The U.S. Food and Drug Administration (FDA) granted Breakthrough Therapy Designation to Ultragenyx's drug setrusumab, which aims to reduce fracture risk in patients with osteogenesis imperfecta. This designation was based on positive results from the Phase 2 portion of the Orbit study and the completed Phase 2b Asteroid study.
Analysts from Leerink Partners and TD Cowen have maintained positive outlooks on Ultragenyx, reiterating Outperform and Buy ratings respectively. These ratings are supported by promising results from the Phase 2 Orbit trial for setrusumab and the Phase 1/2/3 Cyprus2+ study of UX701.
Ultragenyx also reported encouraging results from its Phase 1/2/3 Cyprus2+ study of the investigational gene therapy, UX701, aimed at treating Wilson disease. The study showed improvements in copper metabolism among patients, with some discontinuing standard-of-care treatments.
These are some of the recent developments that have kept Ultragenyx in the spotlight for investors.
InvestingPro Insights
Ultragenyx Pharma's recent financial performance aligns with several key metrics and insights from InvestingPro. The company's revenue growth of 27.44% over the last twelve months, and an impressive 42.27% growth in the most recent quarter, supports the strong sales performance highlighted in the article. This growth trajectory is particularly noteworthy given the InvestingPro Tip that the stock generally trades with low price volatility, suggesting steady investor confidence.
Despite the positive revenue trends, InvestingPro data reveals that Ultragenyx is not currently profitable, with a negative gross profit margin of -37.8% over the last twelve months. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year. However, the company's path to profitability by 2026, as mentioned in the article, remains a key focus for investors.
The stock's current price of $52.18 is trading at 86.43% of its 52-week high, reflecting the market's positive sentiment following the strong Q3 results. Investors seeking more comprehensive analysis can access additional InvestingPro Tips, with 7 more tips available for Ultragenyx Pharma on the InvestingPro platform.
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