On Monday, Ascendis Pharma (NASDAQ:ASND)'s stock price target was increased by an analyst from Jefferies. The new target is set at $194.00, up from the previous $191.00, while the Buy rating on the company's shares remains unchanged. This aligns with the broader analyst sentiment, as targets range from $152 to $288, with a Strong Buy consensus. The adjustment follows recent clinical trial results for Ascendis Pharma's Skytrofa treatment.
Ascendis Pharma has announced that Skytrofa demonstrated non-inferiority compared to the daily growth hormone somatropin in a Phase 2 trial for Turner Syndrome. At the 26-week mark, the growth improvements observed with Skytrofa were on par with those achieved by daily somatropin, regardless of the initial dosage used. Notably, the safety and tolerability of Skytrofa were on par with the daily treatment, with no drug-related discontinuations reported.
The company has shown impressive revenue growth of 115% over the last twelve months, with a strong gross profit margin of 84.8%, though it remains unprofitable.Want deeper insights into Ascendis Pharma's financial health and growth potential? InvestingPro subscribers get access to exclusive analysis and 6 additional ProTips.
The analyst views these trial outcomes as a significant step toward expanding Skytrofa's label. The company has expressed intentions to initiate a basket trial for Skytrofa in additional indications in 2025, which is anticipated to open up further opportunities.
The price target increase to $194 reflects a change in the probability of success (PoS) for Turner Syndrome from 50% to 85%. This update underscores the analyst's confidence in the potential market expansion for Skytrofa based on the promising trial results. NASDAQ:ASND investors are watching closely as the company prepares for future trials and potential label expansions.
In other recent news, Ascendis Pharma's earnings report revealed a net loss of €99.2 million, lower than Oppenheimer's anticipated loss of €110.2 million. Skytrofa's revenue of €47 million fell short of TD Cowen's €55 million estimate and the consensus of €61 million, due to increased sales deductions. The company revised its full-year 2024 revenue guidance for Skytrofa downwards to €200 million - €220 million. Ascendis Pharma also announced a strategic collaboration with Novo Nordisk (NYSE:NVO), which could lead to a $100 million upfront payment and royalties.
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