William Blair raises PTCT stock outlook on strong earnings

On Wednesday, William Blair analysts maintained an Outperform rating on PTC Therapeutics (NASDAQ:PTCT) shares, driven by a solid financial performance bolstered by a significant payment from Novartis (SIX:NOVN). According to InvestingPro data, the stock has experienced a significant 27% decline over the past week, with technical indicators suggesting oversold conditions. The company currently maintains a market capitalization of $2.87 billion. PTC Therapeutics reported a robust bottom line for the first quarter, with revenues totaling $1.176 billion. This figure includes $189.9 million from the company’s core business, encompassing net product revenue and royalty revenue, and a substantial $986.2 million in collaboration revenue. The latter was primarily due to an upfront payment from Novartis related to the PTC518 collaboration.

Despite a 9% year-over-year decline in the core business, largely attributed to the company’s DMD franchise, the Novartis payment significantly contributed to a net income of $866.6 million, or $10.04 per share on a diluted basis. William Blair’s analysis compared PTC (NASDAQ:PTC)’s financial results with both their estimates and the consensus.

PTC Therapeutics also announced an upward revision of its 2025 revenue guidance. The company increased the lower end of its full-year revenue forecast from $600 million to $650 million, while the upper limit remains at $800 million. Additionally, PTC reiterated its full-year 2025 guidance for GAAP R&D and SG&A expenses to be between $805 million and $835 million. Non-GAAP R&D and SG&A expenses for the same period are expected to range from $730 million to $760 million, excluding an estimated $75 million in non-cash, stock-based compensation expense.

Despite the European Commission adopting the Committee for Medicinal Products for Human Use’s (CHMP) negative opinion in March, PTC Therapeutics’ management indicated on the call that several EU countries are using Article 117 of the EU Directive to continue accessing Translarna through local reimbursement mechanisms. The company has already shipped the product to multiple countries in the EU. Analyst price targets for PTCT range from $40 to $113, reflecting diverse views on the company’s potential. Get comprehensive insights with InvestingPro’s detailed research report, one of 1,400+ available US equity analyses.

In other recent news, PTC Therapeutics reported a strong performance for Q1 2025, with revenue reaching $190 million, surpassing the forecast of $167.54 million. This increase was driven by the sales of Emflaza, which exceeded expectations despite competition from biosimilars. Analysts at Citi upgraded PTC Therapeutics’ stock rating from Sell to Neutral, citing the company’s revenue performance as a key factor. Meanwhile, JPMorgan adjusted its price target for the company to $67, maintaining an Overweight rating, despite a more cautious outlook on accelerated approval potential for the PTC518 program. Additionally, PTC Therapeutics is preparing for significant regulatory milestones with upcoming PDUFA dates for Sephience and vatiquinone, which could impact future revenue streams. The company’s strong cash position of over $2 billion is highlighted as a buffer against macroeconomic uncertainties. Investors are closely watching the development of PTC Therapeutics’ diversified product portfolio in rare disease therapeutics, particularly the potential approvals and launches in the summer.

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