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RBC retains upbeat view on Swedish Orphan Bio stock

EditorAhmed Abdulazez Abdulkadir
Published 07/19/2024, 07:15 AM
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On Friday, RBC Capital maintained a positive stance on Swedish Orphan Biovitrum AB (SOBI:SS) (OTC: SWTUY), reiterating an Outperform rating alongside a steady price target of SEK 370.00. The firm's outlook follows Swedish Orphan Bio's robust second-quarter performance, which surpassed expectations in both sales and adjusted EBITA by 6% and 4%, respectively.

The analyst at RBC Capital highlighted the company's strong quarterly results and made slight adjustments to their forecasts. The second half of the year is anticipated to be eventful, with significant developments expected for two of the company's products. Gamifant, which is awaiting a filing in the United States for the treatment of Still's disease, and Aspaveli, which is poised to release data from the phase III VALIANT trial, are both seen as potential positive catalysts for the company.

The RBC Capital analyst also noted that while the upcoming period holds promise, it is also critical to monitor developments related to Merck's clesrovimab, a drug that could potentially compete with Swedish Orphan Bio's Beyfortus. Despite this, the firm's conviction in the company's prospects remains unchanged, as evidenced by the sustained price target and rating.

The unchanged price target of SEK 370 reflects RBC Capital's continued confidence in Swedish Orphan Bio's strategy and market position. The company's focus on rare diseases and the potential for its key products to deliver positive trial results are central to the firm's optimistic outlook.

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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