Crispr Therapeutics shares tumble after significant earnings miss
On Monday, BofA Securities maintained its Buy rating on Ascendis Pharma (NASDAQ:ASND), with a raised price target to $191 from the previous $175. The adjustment follows a discussion with a pediatric endocrinologist about Ascendis Pharma's TransCon CNP for the treatment of achondroplasia (ACH), a bone growth disorder. The expert expressed optimism regarding the statistically significant annual growth velocity (AGV) outcomes, which are comparable to the results of Voxzogo, an approved treatment for ACH.
The pediatric endocrinologist highlighted TransCon CNP's once-weekly injection schedule as a significant advantage over the daily injections required by Voxzogo, predicting this would drive patient preference and uptake if TransCon CNP is approved. According to the specialist, Ascendis Pharma could become the leading injectable treatment in the market, despite entering after Voxzogo, due to Ascendis's existing presence in the pediatric endocrinology space with Skytrofa for Growth Hormone Deficiency (GHD).
The expert anticipates an initial equal market share between TransCon CNP and Voxzogo among both treatment-naive and experienced patients, with a potential shift to an 80/20 split favoring Ascendis in the long term. The focus will likely be on the approximately 80% of ACH patients who have de novo mutations and are most likely to receive treatment.
The positive phase 3 results and feedback from the key opinion leader (KOL) have led BofA Securities to incorporate a standalone value for TransCon CNP in its valuation, contributing an additional $16 per share to the new price target. BofA Securities also noted Ascendis Pharma's guidance for a New Drug Application (NDA) submission in the first quarter of 2025.
In other recent news, Ascendis Pharma has initiated a public offering of American Depositary Shares (ADSs) valued at $300 million, with J.P. Morgan, Morgan Stanley, Evercore ISI, and Goldman Sachs & Co. LLC managing the book-running. In addition, Ascendis Pharma has been the subject of numerous analyst upgrades following successful Phase 3 trials for achondroplasia treatment, with firms such as Oppenheimer, Evercore ISI, and Goldman Sachs raising their price targets.
The company is also planning to submit marketing applications for its TransCon CNP treatment in the United States and the European Union in 2025. Ascendis Pharma has reported encouraging results from its Phase 1/2 IL-Believe Trial with TransCon IL-2 β/γ in patients with platinum-resistant ovarian cancer.
Furthermore, Ascendis Pharma has secured a $150 million funding agreement with Royalty Pharma and received U.S. approval for its product YORVIPATH for adult hyperparathyroidism. The company ended the quarter with EUR259 million in cash and equivalents, projecting SKYTROFA revenue to be between EUR220 million and EUR240 million for the full year of 2024. These are among the recent developments for Ascendis Pharma.
InvestingPro Insights
As Ascendis Pharma (NASDAQ:ASND) captures attention with its promising treatment for achondroplasia, data from InvestingPro provides a deeper financial perspective. The company's market capitalization stands at approximately $8.67 billion, reflecting investor confidence despite the absence of profitability in the last twelve months. Ascendis shows a striking revenue growth of 166.54% over the same period, indicating a robust expansion in its operations. However, it's worth noting that operating income margins remain negative at -111.27%, highlighting the costs associated with its growth trajectory.
InvestingPro Tips reveal that analysts have recently revised their earnings expectations downwards for the upcoming period, which may suggest caution among investors regarding short-term performance. Additionally, the stock is considered to be in overbought territory according to the Relative Strength Index (RSI), a technical indicator that could imply a potential pullback. For readers interested in a more comprehensive analysis, InvestingPro offers further insights, with over 10 additional tips available on their platform for Ascendis Pharma.
With these financial metrics and expert insights, stakeholders can better gauge the investment potential of Ascendis Pharma as it progresses with its innovative treatments in the pharmaceutical industry.
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