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Oppenheimer has increased the price target on Ascendis Pharma (NASDAQ: NASDAQ:ASND) to $190 from $180, maintaining an Outperform rating.
The adjustment follows the recent Phase 3 success of Ascendis Pharma's treatment for achondroplasia, navepegritide (TransCon CNP), which is now anticipated to launch between 2025 and 2026.
The firm highlighted the treatment's promising clinical profile compared to BioMarin Pharmaceutical (NASDAQ:BMRN)'s Voxzogo, which is expected to generate sales of $743 million in 2024.
Navepegritide demonstrated an annualized growth velocity (AGV) benefit of +1.78cm/year, slightly higher than Voxzogo's +1.57cm/year in similar age groups. Additionally, the absence of blood pressure reductions with navepegritide suggests a distinct safety advantage.
Ascendis Pharma is preparing to submit marketing applications for navepegritide in the United States and the European Union in the first and third quarters of 2025, respectively. In response to these developments, Oppenheimer has revised its projections for the company and raised its price target.
In other recent news, Ascendis Pharma has reported encouraging results from its Phase 3 ApproaCH trial for TransCon CNP, a treatment for achondroplasia.
The trial demonstrated a significant increase in annualized growth velocity compared to a placebo. Following these results, analyst firms such as Evercore ISI, Jefferies, Goldman Sachs, and BofA Securities have either increased their price targets or maintained their "Buy" ratings for Ascendis Pharma.
Evercore ISI anticipates that TransCon CNP sales will significantly impact the company's profit margins, contributing to Ascendis Pharma's transition to cash flow positivity in the next year.
Ascendis Pharma is expected to submit a New Drug Application for TransCon CNP in the first quarter of 2025. The company has also shown promising signs from its Phase 1/2 IL-Believe Trial with TransCon IL-2 β/γ in patients with platinum-resistant ovarian cancer.
In terms of financials, 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 firm 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.
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