Stifel, a financial services firm, increased the price target for Viridian Therapeutics (NASDAQ: VRDN) to $40 from the previous $33, while sustaining a Buy rating on the shares.
The adjustment follows encouraging results from Viridian's Phase 3 THRIVE study. The study's positive topline data has led to an increased probability of success (PoS) for VRDN-001/003 to 80% from the prior estimate of 66%.
According to the firm, the efficacy data for VRDN's thyroid eye disease (TED) programs is comparable to that of Tepezza, a competing treatment, which substantially reduces the risk for Viridian's programs due to the shared epitope and pharmacokinetic (PK) matching. The firm also notes that Viridian stands out as a highly de-risked Phase 3 and beyond company in a proven commercial market, which could make it a potential merger and acquisition (M&A) target.
Stifel also pointed out that key factors for VRDN-001 will be the long-term durability and safety, which remain critical considerations. Additionally, non-human primate (NHP) data from the half-life extended FcRn antagonist VRDN-008 are projected to be released in the second half of 2024. This data is currently not a major focus for investors but is seen as having the potential to provide additional value to Viridian's current valuation.
Viridian Therapeutics has made significant strides in its clinical trials for thyroid eye disease (TED) treatments. The company reported positive results from its phase 3 THRIVE trial for veligrotug, meeting all primary and secondary endpoints.
This success was echoed in the completion of patient enrollment for its Phase 3 trial of VRDN-001, with top-line results anticipated in September 2024. Additionally, Viridian initiated two global phase 3 trials, REVEAL-1 and REVEAL-2, for VRDN-003, a subcutaneous form of the antibody.
Several analyst firms, including BTIG, Needham, Goldman Sachs, H.C. Wainwright, and RBC Capital, have reiterated their positive ratings on Viridian, reflecting confidence in the company's ongoing trials and the potential of its TED treatments. BTIG in particular raised its price target for Viridian Therapeutics to $56.00, maintaining a Buy rating based on the promising efficacy and safety data from the THRIVE study.
InvestingPro Insights
As Viridian Therapeutics (NASDAQ:VRDN) continues to make strides in its Phase 3 THRIVE study, investors are closely monitoring the company's financial health and market performance. According to InvestingPro, Viridian holds more cash than debt on its balance sheet, which is a positive sign for the company's financial stability. However, analysts have raised concerns as they have revised their earnings downwards for the upcoming period, reflecting potential challenges ahead.
InvestingPro data reveals a market capitalization of $1.12 billion for Viridian, yet the company faces significant profitability challenges, with a reported negative P/E ratio of -4.2, and a gross profit margin of -57041.32% for the last twelve months as of Q2 2024. Despite a strong return over the last three months, Viridian does not pay dividends, which might be a consideration for income-focused investors. Additionally, with a substantial revenue decline of -80.41% during the same period, the company's financial performance highlights the high-risk nature of investing in biotech stocks.
For those considering an investment in Viridian, it's worth noting that there are 9 additional InvestingPro Tips available, which can provide further insights into the company's financials and market outlook. These tips can be found on the InvestingPro platform and may serve as a valuable resource for making informed investment decisions.
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