Piper Sandler maintains Overweight rating on Agios Pharma stock

Published 26/09/2024, 15:36
Piper Sandler maintains Overweight rating on Agios Pharma stock

Piper Sandler has affirmed a positive stance on Agios Pharma (NASDAQ: NASDAQ:AGIO), maintaining an Overweight rating and a price target of $56.00. This outlook follows an unexpected market development involving a competing treatment for sickle cell disease (SCD).

Pfizer (NYSE:PFE), a company not covered by Piper Sandler, has opted to voluntarily remove its SCD drug Oxbryta (voxelotor) from the market. The withdrawal precedes a special meeting by the EMA's CHMP, set to discuss recent safety data concerning the drug.

The analyst noted that while this is an unfortunate turn for patients and families affected by SCD, it could be beneficial for Agios Pharma's mitapivat and Vertex Pharmaceuticals (NASDAQ:VRTX)' Casgevy.

Earlier in the month, Piper Sandler highlighted optimism from doctors regarding the potential for both mitapivat and Casgevy. Given the unmet medical need, which may now be significantly greater, and the positive data observed so far, Piper Sandler expressed confidence in the commercial prospects of these treatments.

The removal of Oxbryta from the market has altered the competitive landscape for SCD therapies. Agios Pharma's mitapivat and Vertex Pharmaceuticals' Casgevy are now poised to address a more pronounced unmet need in the treatment of this genetic disorder.

In other recent news, Vertex Pharmaceuticals reported a 6% increase in Q2 2024 revenues, reaching $2.65 billion, primarily due to their cystic fibrosis treatments. The company's CEO, Dr. Reshma Kewalramani, raised the full-year product revenue guidance to between $10.65 billion and $10.85 billion. Vertex is making progress on its cystic fibrosis drug, vanzacaftor/tezacaftor/deutivacaftor, which is currently under regulatory review with a U.S. FDA decision expected by January 2, 2025.

Investment firms Oppenheimer and Wolfe Research increased their price targets for Vertex, while Barclays downgraded the stock from Overweight to Equal Weight. In addition, the company is launching CASGEVI for sickle cell disease and beta-thalassemia, and preparing for the launches of Vanzacaftor Triple and Suzetrigine. Vertex is also initiating a global Phase 3 study of povetacicept for IgA nephropathy and other B-cell mediated diseases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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