Viridian shares rise on positive veligrotug data, analyst maintains buy rating

EditorAhmed Abdulazez Abdulkadir
Published 12/17/2024, 08:30 AM
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On Tuesday, H.C. Wainwright maintained a Buy rating and a $34.00 price target for Viridian Therapeutics (NASDAQ: VRDN), whose shares currently trade at $21.54 and have surged 76% over the past six months. According to InvestingPro data, the company holds more cash than debt on its balance sheet, positioning it well as it advances its promising drug candidate, veligrotug, for treating Thyroid Eye Disease (TED).

The Phase 3 study results, which were first reported in September, revealed a notable improvement in patients with active TED. Specifically, 56% of patients treated with veligrotug experienced significant improvement in diplopia, commonly known as double vision, compared to just 25% in the placebo group. Additionally, 32% of those treated achieved complete resolution of diplopia by week 15, doubling the 14% resolution rate in the placebo group.

Veligrotug also met all primary and secondary endpoints after 15 weeks of treatment. The proptosis responder rate, which measures the percentage of patients with more than a 2mm reduction in eye bulging from baseline, was 56% in the treatment group versus 8% in the placebo group. The mean change in proptosis for the treatment group was -2.34mm, a significant improvement over the -0.46mm change observed in the placebo group.

The analyst highlighted that veligrotug's performance exceeded that of Tepezza, a competing treatment for chronic TED, in some metrics, including a better safety profile. Notably, veligrotug demonstrated a lower rate of hearing impairment, a key concern for investors, with a placebo-adjusted rate of 9.6% compared to 13% for Tepezza.

The positive outcomes and safety profile of veligrotug position it as a potential market leader in the treatment of TED. H.C. Wainwright's reiteration of the Buy rating and price target reflects confidence in the drug's market potential and Viridian Therapeutics' prospects. InvestingPro analysis shows analyst targets ranging from $22 to $61, with 8 additional exclusive ProTips available for subscribers.

For deeper insights into Viridian's financial health and growth prospects, access the comprehensive Pro Research Report, part of the extensive analysis available for 1,400+ US stocks.

In other recent news, Viridian Therapeutics has made significant strides in its clinical trials for thyroid eye disease (TED) treatments.

The company's lead asset, veligrotug, recently met all primary and secondary endpoints in its Phase III THRIVE trials. This success has been recognized by several analyst firms, including Oppenheimer, TD Cowen, Stifel, and Needham, which have maintained Buy ratings for the company's stock and adjusted their price targets upwards.

In addition to veligrotug, Viridian Therapeutics is also advancing a subcutaneous program, VRDN-003, which is in Phase III development. This development has further bolstered the company's standing in the TED treatment landscape.

On the financial front, Viridian has initiated a public offering of $150 million of its common stock and Series B non-voting convertible preferred stock. The proceeds from this offering will be used for clinical development programs, working capital, and general corporate purposes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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