On Wednesday, Mirum Pharmaceuticals (NASDAQ:MIRM) received a reiterated Buy rating and a $66.00 price target from H.C. Wainwright. The firm's analyst highlighted the company's impressive third-quarter sales results for its drug LIVMARLI, used to treat Alagille syndrome (ALGS) and progressive familial intrahepatic cholestasis (PFIC).
Mirum reported a 25% quarterly increase in net sales, reaching $59.1 million, up from $47.2 million in the previous quarter. This also represented a significant 53% increase from the $38.7 million recorded in the same quarter of the previous year.
Mirum's management has responded to the strong sales performance by raising its 2024 global net product sales guidance to a range of $330 million to $335 million. This adjustment implies an 86% annual growth to the midpoint and is an increase from the previously projected range of $310 million to $320 million. This optimistic revision reflects the company's confidence in the continued success of LIVMARLI.
The analyst noted that while the sales of LIVMARLI for PFIC have not been individually reported within the total LIVMARLI sales revenue, information from the company's management revealed a promising start for the drug in this area. Approximately 20 patients who were initially treated with a clinical drug substance have now transitioned to treatments reimbursed by payors, indicating early market penetration and adoption.
In summary, the analyst from H.C. Wainwright has reaffirmed a Buy rating on Mirum Pharmaceuticals, maintaining a $66 price target. The decision follows Mirum's announcement of robust third-quarter sales and an upward revision of its full-year sales forecast for 2024. The company's performance is particularly noteworthy given the successful market introduction of LIVMARLI for PFIC, alongside its existing use for ALGS.
In other recent news, Mirum Pharmaceuticals reported significant growth in their Q3 2024 results. The company saw an 89% rise in net product sales, primarily driven by robust sales of LIVMARLI, their leading medicine. This strong performance led to an upward revision of the full-year revenue guidance, now expected to fall between $330 million and $335 million.
Despite a net loss for the quarter, Mirum's cash reserves remain strong, enabling continued investment in its pipeline, including a new treatment candidate for Fragile X syndrome.
The company's Q3 net product sales reached $90.3 million, while LIVMARLI sales hit $59.1 million. Among other recent developments, the company acquired MRM-3379 for Fragile X syndrome treatment, further emphasizing their strategic focus on rare genetic diseases.
Mirum also received a breakthrough therapy designation for Volixibat for cholestatic pruritus in PBC patients, and its CHENODAL and CTX NDA are now under priority review with a PDUFA date of December 28, 2024.
Mirum Pharmaceuticals remains optimistic about their molecule for Fragile X syndrome treatment and is actively engaging with the FDA to enroll younger patients in upcoming studies. The company's strategic moves and strong demand for their products, particularly LIVMARLI, have led to increased revenue guidance, showcasing their potential for continued growth in the rare disease sector.
InvestingPro Insights
Mirum Pharmaceuticals' strong financial performance, as highlighted in the article, is further supported by recent InvestingPro data. The company's revenue growth has been exceptional, with a 128.34% increase over the last twelve months as of Q2 2024. This aligns with the impressive sales figures for LIVMARLI mentioned in the article and supports management's decision to raise their 2024 sales guidance.
InvestingPro Tips reveal that Mirum operates with a moderate level of debt and has liquid assets exceeding short-term obligations, which could provide financial flexibility as the company continues to expand its market presence. However, it's worth noting that despite the strong sales growth, the company is not yet profitable over the last twelve months, which is consistent with the analyst's focus on sales performance rather than profitability at this stage.
The stock has seen a significant price uptick over the last six months, with InvestingPro data showing a 70.62% price total return. This surge likely reflects investor optimism about LIVMARLI's sales trajectory and Mirum's improved guidance.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Mirum Pharmaceuticals, providing deeper insights into the company's financial health and market position.
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