On Thursday, Oppenheimer adjusted its price target for Viridian Therapeutics (NASDAQ:VRDN), a biotechnology company focused on thyroid eye disease (TED) treatments. The firm reduced its price target to $31 from the previous $36 while maintaining an Outperform rating on the stock.
The adjustment follows the completion of enrollment for the THRIVE trial of VRDN-001, Viridian's lead candidate for treating active TED, in March. Expectations are set for the top-line data, which is anticipated to be released in September, to demonstrate efficacy comparable to or better than Tepezza, a competing treatment, with the advantage of fewer and shorter infusions, and potentially a more favorable safety profile.
Continuing its momentum, Viridian's THRIVE-2 trial, which addresses the chronic setting of TED, is slated to present results toward the end of the year. Additionally, following a recent meeting with the FDA, VRDN-003, a subcutaneous formulation, is scheduled to enter a pivotal TED program by mid-year.
Beyond treatments for TED, Viridian is advancing its preclinical FcRn portfolio, which holds promise for a range of autoimmune diseases. The portfolio includes VRDN-006, which is expected to enter clinical trials by early next year.
Despite the lowered price target, Oppenheimer remains optimistic about Viridian's prospects, particularly with the upcoming catalysts in the second half of 2024. The reduction in price target reflects revisions to Oppenheimer's financial model, but the firm's outlook on Viridian Therapeutics remains positive.
InvestingPro Insights
As Viridian Therapeutics (NASDAQ:VRDN) navigates through a crucial phase with its THRIVE trial and anticipates key data releases, it's important to consider the company's financial health and market performance. InvestingPro data indicates that Viridian has a market capitalization of approximately $950.95 million, underscoring its presence in the biotech sector. Despite having a negative P/E ratio of -3.43, which reflects its current lack of profitability, the company holds more cash than debt, suggesting a stable financial position to support ongoing clinical trials.
However, InvestingPro Tips highlight some concerns; analysts predict a sales decline in the current year and do not expect the company to be profitable within this timeframe. Additionally, with gross profit margins in the negative and a significant sales drop of 82.59% in the last twelve months as of Q1 2024, it's clear that Viridian is facing financial challenges. That said, the company's liquid assets do exceed its short-term obligations, providing some financial cushioning.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at: https://www.investing.com/pro/VRDN. To access these insights and enhance your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 8 more tips listed on InvestingPro, investors can gain a deeper understanding of Viridian's market potential and financial trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.