On Wednesday, Morgan Stanley adjusted its price target on shares of Ascendis Pharma (NASDAQ:ASND), increasing it to $140 from the previous $116. The firm has kept its Equalweight rating on the stock. This change comes in the wake of the U.S. Food and Drug Administration (FDA) extending the review period for Ascendis Pharma's drug candidate, TransCon PTH.
The FDA has set a new Prescription Drug User Fee Act (PDUFA) date for TransCon PTH, now expected on August 14, 2024. This extension adds three months to the regulatory review timeline. The management of Ascendis Pharma has expressed confidence in the path forward, despite the delay potentially causing some initial disappointment among stakeholders.
Ascendis Pharma's management remains optimistic about the possibility of launching TransCon PTH in the third quarter of 2024. This optimism is reflected in the company's communications with investors and the public.
The revision of the PDUFA date is a procedural step in the FDA's evaluation process of new drug applications. It is intended to ensure that the review of TransCon PTH is thorough and that any potential issues are addressed before the drug is approved for market release.
InvestingPro Insights
As Ascendis Pharma (NASDAQ:ASND) navigates the regulatory landscape with its TransCon PTH drug, investors are watching closely for signs of the company's financial health and market potential. According to recent data from InvestingPro, Ascendis Pharma has a market capitalization of $7.16 billion, which reflects its standing in the biopharmaceutical space. Despite the company not being profitable over the last twelve months, analysts have revised their earnings upwards for the upcoming period, indicating a potential shift in the company's financial trajectory.
InvestingPro Tips suggest that the stock is currently in oversold territory based on the RSI, which could attract investors looking for an entry point. Moreover, with liquid assets exceeding short-term obligations, the company appears to be in a solid position to manage its immediate financial responsibilities. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which can be accessed for a deeper dive into Ascendis Pharma's financials and market position.
Investors interested in leveraging these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more value from the InvestingPro platform. With the next earnings date set for August 29, 2024, stakeholders will be keen to monitor Ascendis Pharma's progress as it approaches the revised PDUFA date for TransCon PTH.
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