On Tuesday, Goldman Sachs reaffirmed its Buy rating on Viridian Therapeutics (NASDAQ:VRDN) with a steady price target of $23.00. The endorsement follows Viridian's announcement of its Phase 3 trial design for VRDN-003, a treatment for thyroid eye disease (TED). The company plans to conduct two separate trials for this drug: REVEAL-1 for active patients with a Clinical Activity Score (CAS) of at least 3, and REVEAL-2 for chronic patients with a CAS ranging from 0 to 7. Both trials will evaluate quarterly (Q4W) and every eight weeks (Q8W) dosing regimens over a 24-week period, focusing on the primary endpoint of proptosis response.
The management team at Viridian discussed their expectations for the pivotal results of VRDN-001, another drug for TED, and confirmed the anticipated topline readouts. The active TED results from the THRIVE trial are expected in September 2024, while the results for chronic TED from the THRIVE-2 trial are projected by the end of 2024. During a fireside discussion, management highlighted the advantages of VRDN-001's shorter treatment course, which involves five doses compared to the eight doses required by Tepezza, its competitor.
Viridian's management also spoke on the commercial prospects for their TED treatments, emphasizing the potential of VRDN-003 to expand the patient base. The company believes that subcutaneous (SC) administration of the drug could eventually capture up to 70% of the total market share. This is a conservative estimate compared to Goldman Sachs' projection, which models a market share of over 90% for the SC treatment.
The company's strategic focus is on reaching new patients and establishing a strong presence in the TED market with its innovative treatment options. As the trials progress, Viridian Therapeutics remains a company of interest for investors, with Goldman Sachs' reiteration of a Buy rating and a $23.00 price target reflecting confidence in the company's direction and potential.
In other recent news, Viridian Therapeutics has made significant strides in its clinical trials. The company has completed the enrollment for its Phase 3 trial of VRDN-001 for active thyroid eye disease (TED), with top-line results expected in September 2024. Simultaneously, the firm is progressing with its subcutaneous VRDN-003 program, which is set to enter pivotal trials following a positive Type C meeting with the FDA.
RBC Capital and Wolfe Research have maintained their positive outlook on Viridian, with RBC reiterating an Outperform rating and a $35.00 price target, while Wolfe Research initiated coverage with an Outperform rating, projecting a potential revenue of approximately $690 million worldwide by 2027 from VRDN-001. Goldman Sachs also initiated coverage on Viridian with a Buy rating, highlighting the potential of the company's leading assets, VRDN-001 and VRDN-003.
These recent developments underscore the potential financial and therapeutic impact of Viridian's lead drug candidates in the coming years. As the market looks forward to the possible success of VRDN-001 and VRDN-003, investor attention will likely be focused on the milestones and financial performance outlined by RBC Capital, Wolfe Research, and Goldman Sachs.
InvestingPro Insights
Recent metrics from InvestingPro reveal a mixed financial landscape for Viridian Therapeutics (NASDAQ:VRDN). The company holds a market capitalization of approximately $815.01 million, indicating its size within the biotech sector. Analysts have taken note of the company's financial health, as Viridian maintains more cash than debt on its balance sheet, providing a degree of financial stability. Additionally, it's worth noting that Viridian's liquid assets exceed its short-term obligations, which could be crucial for funding ongoing clinical trials and operations.
However, challenges remain, as the company is not currently profitable and has been quickly burning through cash, with a substantial negative gross profit margin over the last twelve months. This is reflected in the negative P/E ratio of -2.83 and an even lower adjusted P/E ratio for the last twelve months as of Q1 2024, standing at -3.72. The significant revenue decline of -82.59% over the same period further underscores the financial hurdles the company faces.
Investors following Goldman Sachs' optimistic outlook may find these metrics to be a critical part of their due diligence. For those looking to delve deeper into Viridian's financials and future prospects, InvestingPro offers additional insights. There are 9 more InvestingPro Tips available, which can provide a more comprehensive understanding of VRDN's potential. Interested investors can access these tips and take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.