Pharming Group shares hold Buy rating on robust growth prospects

On Tuesday, H.C. Wainwright maintained a positive stance on Pharming Group (NASDAQ: PHAR) shares, reaffirming a Buy rating and a $37.00 price target for the stock. The firm's analyst highlighted the robust growth prospects of the global Hereditary Angioedema (HAE) market, which is currently valued at approximately $2.9 billion, with expectations to expand to $5.8 billion by 2030 according to Grand View Research.

Pharming Group's Ruconest, a recombinant C1 esterase inhibitor for acute HAE attacks, continues to be a key player in the market. Approved in the European Union in 2010 and in the United States in 2014, Ruconest stands out for its safety and efficacy. The C1 esterase inhibitors segment remains dominant in the market for approved on-demand therapies, despite the potential introduction of oral on-demand therapies with different mechanisms of action.

The demand for Ruconest is on an upward trajectory, as indicated by its status as the second most prescribed product for acute HAE attacks. Pharming's second-quarter update for 2024 reported that over 100 new patients have been enrolled in the United States, signaling a sustained increase in the product's usage. This growth is supported by the fact that new physicians are prescribing Ruconest, contributing to a larger total patient count on the therapy.

Financially, Ruconest has demonstrated strong performance with sales reaching $63 million in the second quarter of 2024. This financial success underpins the firm's decision to reiterate its Buy rating and maintain the $37 price target for Pharming Group. The analyst's commentary reflects confidence in the ongoing demand and market position of Ruconest within the acute HAE therapy space.

In other recent news, Pharming Group has reported robust growth in its financial results and patient enrollment for its key products, RUCONEST and Joenja. The company saw a 23% increase in Q2 sales for RUCONEST and a significant sales increase for Joenja.

Furthermore, Pharming Group initiated a Phase 2 proof-of-concept study to assess leniolisib (Joenja) in patients with primary immunodeficiencies (PIDs) related to immune dysregulation from altered PI3Kδ signaling. The results of this trial could potentially inform the design of a future Phase 3 study.

H.C. Wainwright has maintained a Buy rating and a $37.00 stock price target for Pharming Group. This comes following the company's recent regulatory success, as Joenja received approval from the Medicines and Healthcare products Regulatory Agency (MHRA) in the U.K. for the treatment of activated phosphoinositide 3-kinase delta syndrome (APDS), marking its first specific approval for APDS in the country. This complements the drug's existing approvals in the United States and Israel.

These are recent developments in Pharming Group's journey, showcasing its progress in the biopharmaceutical industry. The company's full-year revenue guidance remains between $280 million and $295 million, with a Q2 revenue growth of 35% and a stable gross profit of 89%.

InvestingPro Insights

Complementing the positive outlook from H.C. Wainwright, recent InvestingPro data provides additional context to Pharming Group's financial position. The company's revenue growth of 34.54% over the last twelve months as of Q2 2024 aligns with the analyst's observations on Ruconest's strong market performance. This growth is further emphasized by the impressive gross profit margin of 88.55%, which InvestingPro Tips highlight as one of the company's strengths.

Despite the robust revenue growth and strong gross margins, InvestingPro Tips also indicate that analysts do not anticipate the company to be profitable this year. This insight adds nuance to the financial picture, suggesting that while Pharming Group is experiencing significant top-line growth, it may still be investing heavily in future development and market expansion.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Pharming Group, providing a deeper understanding of the company's financial health and market position.

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