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H.C. Wainwright has increased the price target for SpringWorks Therapeutics (NASDAQ: SWTX) to $76.00 from $74.00, while retaining a Buy rating on the stock. This adjustment follows the company's recent financial performance report for the second quarter of 2024.
SpringWorks Therapeutics recently announced its 2Q24 financial results, which revealed a net loss of $0.54 per share. This figure significantly outperformed the initial net loss estimate of $0.99 per share.
A key highlight from the report was the revenue generated by OGSIVEO (nirogacestat), which amounted to $40.2 million. This revenue not only surpassed the analyst's forecast of $38.5 million but also exceeded the consensus estimate of $34.4 million, as per FactSet.
The company's product, OGSIVEO, has demonstrated a strong market launch, prompting the analyst to project revenue of $186.9 million from the drug for the full year of 2024. The total revenue expectation for SpringWorks in 2024 is now set at $206.5 million.
The European Medicines Agency (EMA) has also validated the Marketing Authorization Application (MAA) for nirogacestat for the treatment of adults with desmoid tumors (DTs), which could further bolster the company's financial standing.
In terms of expenses, SpringWorks reported $57.8 million in research and development (R&D) and $44.3 million in selling, general, and administrative (SG&A) expenses for 2Q24. These figures were against the analyst’s estimates, which were $49.3 million for R&D and $65.5 million for SG&A. The full-year net loss projection for 2024 has been revised to $2.82 per share, a decrease from the previous estimate of $3.86 per share.
Spring Works Therapeutics completed the submission of a New Drug Application (NDA) for its investigational drug mirdametinib to the FDA. This application is a significant step in providing a new treatment option for patients with neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN).
The submission is backed by data from the Phase 2b ReNeu trial, which showed promising results and improvements in patient's quality of life. Barclays has maintained an Overweight rating on Spring Works shares, reflecting their confidence in the company's potential market performance.
The firm also anticipates that the NDA submission could lead to a priority review by the FDA, potentially resulting in approval in early 2025. In addition to these developments, Spring Works plans to seek regulatory approval in the European Union later this year.
InvestingPro Insights
Following H.C. Wainwright's updated price target for SpringWorks Therapeutics, an analysis of real-time data from InvestingPro provides a deeper financial perspective on the company's standing. The adjusted market capitalization of SpringWorks is currently $2.52 billion, indicating the size and scale of the company in the biopharmaceutical landscape. Despite facing challenges common in the biotech sector, SpringWorks holds a strong gross profit margin of 95.27% for the last twelve months as of Q2 2024, which underscores the company's ability to maintain high profitability on its products relative to revenue.
Additionally, InvestingPro Tips highlight that SpringWorks holds more cash than debt on its balance sheet, which is a positive sign of financial health and may provide the company with flexibility for future growth and investment. However, it is important to note that analysts do not expect the company to be profitable this year, reflecting the typical high investment and long timelines associated with drug development and commercialization in the biotech industry. For those seeking further insights, there are additional InvestingPro Tips available on the company, such as sales growth anticipation and earnings revisions by analysts, which can be found at InvestingPro SpringWorks Therapeutics.
With the company's recent financial performance and the potential for its drug OGSIVEO, investors may find these insights valuable when considering SpringWorks Therapeutics' growth trajectory and investment potential. The InvestingPro platform currently lists several more tips for a comprehensive analysis.
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