On Monday, Goldman Sachs reaffirmed a Buy rating on Ultragenyx Pharma (NASDAQ:RARE) with a steady price target of $78.00. Currently trading at $42.07, InvestingPro analysis suggests the stock is slightly undervalued, with analyst targets ranging from $48 to $140. The firm's analysis follows Ultragenyx's announcement of its forecasted revenue for fiscal year 2024, which is expected to be between $555 million and $560 million.
This projection surpasses both Goldman Sachs and Visible Alpha Consensus Data estimates of $542 million and $536 million, respectively, and also outperforms the company's own guidance range of $530 million to $550 million. The company has demonstrated strong revenue growth of 27.44% over the last twelve months. Notably, the revenue from Crysvita, Ultragenyx's leading product, is anticipated to contribute $405 million to $410 million, topping the consensus estimates of $399.3 million and $398.8 million.
In addition to the current fiscal year's expectations, Ultragenyx has provided revenue guidance for fiscal year 2025, predicting totals between $640 million and $670 million. This guidance also exceeds the consensus estimates of $619 million and $626 million, indicating a year-over-year growth of approximately 14% to 20%. The management team at Ultragenyx anticipates that the company will reach GAAP profitability by the year 2027.
InvestingPro data shows the company currently operates with moderate debt levels and maintains strong liquidity with a current ratio of 2.81, though it has yet to achieve profitability. Get deeper insights into Ultragenyx's financial health with InvestingPro's comprehensive research report, available along with 6 additional ProTips. Furthermore, the company may receive up to three priority review vouchers, which could expedite the review process for future treatments.
Goldman Sachs' positive outlook is also bolstered by Ultragenyx's confidence in the Phase 3 Orbit study of setrusumab for the treatment of osteogenesis imperfecta. Although the first interim analysis did not meet statistical significance, management believes the likelihood of success will increase with the second interim analysis expected in mid-2025. This optimism is based on the timing of curve separation and patient follow-up duration.
Looking beyond setrusumab, Goldman Sachs anticipates further advancements in Ultragenyx's pipeline this year. These include a PDUFA decision and the potential commercial launch of gene therapy UX111 for Sanfilippo syndrome in the second half of 2025, as well as the Biologics License Application (BLA) filing for gene therapy DTX401 for GSD1a around mid-2025.
With a market capitalization of $3.88 billion and an overall Financial Health score of "FAIR" according to InvestingPro, Goldman Sachs concludes that Ultragenyx's ongoing clinical and commercial achievements, coupled with the potential of its pipeline, support a constructive view on the stock's future performance.
In other recent news, Ultragenyx Pharmaceutical (NASDAQ:RARE) Inc. has made significant strides in its clinical pipeline. The company has reported a remarkable 42% year-over-year increase in Q3 2024 revenue, totaling $139 million, despite a net loss of $134 million for the same period. RBC Capital Markets has reiterated its Outperform rating on Ultragenyx, expressing optimism about the company's drug for Osteogenesis Imperfecta.
On another front, Ultragenyx has initiated the pivotal Phase 3 Aspire study for GTX-102, an experimental treatment for Angelman syndrome, a development that has led H.C. Wainwright to maintain its Buy rating on the company. In addition, Ultragenyx is seeking FDA approval for its Sanfilippo A gene therapy, UX111, following the FDA's acceptance of cerebrospinal fluid heparan sulfate as a biomarker for accelerated approval.
These recent developments highlight Ultragenyx's commitment to advancing its clinical pipeline and reaching GAAP profitability by the end of 2026. The company is also preparing for Biologics License Application submissions for treatments targeting rare diseases, with potential for three new therapies launching in upcoming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.