Canopy Growth stock tumbles after announcing $200 million share sale plan
On Wednesday, TD Cowen adjusted its outlook on shares of Ascendis Pharma (NASDAQ:ASND), reducing the stock's price target to $157.00 from the previous $175.00. The firm retained a Buy rating on the shares. The revision follows a report that Skytrofa's revenue of €26 million fell short of TD Cowen's expectation of €73 million and the consensus estimate of €77 million.
The revenue shortfall was attributed to deductions amounting to €27 million due to a lower net selling price caused by rebating. However, the price has since stabilized, with €53 million in sales for the second quarter, which is seen as the real run rate going into the second half of the year.
The company has also revised its full-year 2024 guidance, now anticipating revenue to be in the range of €220 million to €240 million. This adjustment comes after considering the latest sales trends and market conditions. In addition to the update on Skytrofa, TD Cowen noted that Yorvipath generated €5 million in revenue, aligning with their projection and slightly below the consensus of €6 million.
Ascendis Pharma is preparing for a full United States launch of Yorvipath in the first quarter of 2025, with an anticipated list price of $285,000 per year. This launch is expected to be a significant event for the company, as it will mark the introduction of the drug into a major market.
Furthermore, the company is awaiting Phase 3 data for CNP, with the database recently locked, indicating that the analysis is forthcoming. The expected data release is a key milestone for Ascendis Pharma. However, the New Drug Application (NDA) filing for CNP has been delayed to the first quarter of 2025.
Investors and stakeholders of Ascendis Pharma are closely monitoring these developments as they may have a notable impact on the company's financial performance and stock valuation in the near future.
In other recent news, Ascendis Pharma experienced a significant revenue decline for its drug Skytrofa, prompting a downward revision of its full-year 2024 revenue guidance. Investment banking firm Jefferies reduced its share price target for Ascendis from $196.00 to $174.00, but maintained a Buy rating. Other firms like Citi and Goldman Sachs also adjusted their price targets for Ascendis due to the company's underperformance, but retained their Buy ratings.
Despite the setbacks with Skytrofa, Ascendis is making progress with its Yorvipath franchise, which has seen growth and secured FDA approval. The company also entered a $150 million royalty agreement with Royalty Pharma for U.S. sales of Yorvipath.
In the wake of these developments, JPMorgan, TD Cowen, and Stifel have updated their outlooks on Ascendis, indicating positive expectations for the company's future. These are the recent developments for Ascendis Pharma, a company that continues to make significant strides in the medical field.
InvestingPro Insights
Ascendis Pharma (NASDAQ:ASND) is navigating a challenging financial landscape, as evidenced by recent metrics and analysis. According to InvestingPro data, the company has a market capitalization of $7.72 billion and has experienced a remarkable revenue growth rate of 322.18% over the last twelve months as of Q1 2024. Despite this impressive growth, Ascendis Pharma is not expected to be profitable this year, with a negative P/E ratio of -14.15, reflecting the company's current earnings deficit.
InvestingPro Tips suggest that Ascendis Pharma operates with a moderate level of debt and, notably, has not paid dividends to shareholders. The company's high revenue valuation multiple may be of interest to investors looking for growth potential, as Ascendis Pharma has delivered a high return over the last decade. However, it is important to consider that the company's short-term obligations currently exceed its liquid assets, which could pose liquidity risks.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips on Ascendis Pharma, available at https://www.investing.com/pro/ASND. These insights could provide investors with a deeper understanding of the company's financial health and future prospects as it approaches key milestones such as the anticipated launch of Yorvipath in the United States.
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