On Tuesday, Zevra Therapeutics, Inc. (NASDAQ:ZVRA) shares received a vote of confidence from a Roth/MKM analyst, as the firm's price target on the company's stock was raised to $21.00 from $19.00. The analyst maintained a Buy rating on the stock, following the recent FDA approval of MIPLYFFA for Niemann-Pick disease type C (NPC).
The optimism stems from the approval of MIPLYFFA, which is expected to be commercially available within eight to 12 weeks. The analyst anticipates that Zevra Therapeutics will begin commercial sales of the drug in late Q4 2024. There is an expectation of a significant initial sales boost due to pent-up demand for the treatment.
Furthermore, Zevra Therapeutics has been granted a Priority Review Voucher (PRV) by the FDA, which is considered highly valuable. PRVs have been in high demand, with recent sales of such vouchers reaching substantial amounts. The sale of Zevra's PRV could potentially provide a significant financial boost to the company.
The funds from the possible sale of the PRV are expected to be used by Zevra Therapeutics to support the launch of their products and may also provide the means to acquire new products. The analyst highlighted the strategic importance of the PRV in funding the company's initiatives.
Zevra Therapeutics' progress with MIPLYFFA and the additional financial prospects from the PRV have contributed to the increased confidence from analysts, as reflected in the updated price target for the company's shares.
In other recent news, JMP Securities initiated coverage on Zevra, assigning a Market Outperform rating and setting a price target of $17.00, while H.C. Wainwright upgraded Zevra's stock target to $20.00 from $18.00, maintaining a Buy rating. Canaccord Genuity, on the other hand, revised its outlook on Zevra, reducing the price target but maintaining a buy rating.
In their Q2 2024 earnings call, Zevra reported a net revenue of $4.4 million and a net loss of $19.9 million. These financial developments, alongside the FDA approval of MIPLYFFA, highlight Zevra's commitment to addressing unmet medical needs in the rare disease sector.
InvestingPro Insights
Amidst the positive outlook from analysts following FDA approval for Zevra Therapeutics' MIPLYFFA, real-time data from InvestingPro provides a deeper financial perspective on the company. With a market capitalization of approximately $398.84 million, Zevra operates with a high Price / Book multiple of 12.28, suggesting a premium valuation in the market. Despite a notable revenue growth of 43.21% over the last twelve months as of Q2 2024, the company faces challenges with a projected sales decline and an anticipated drop in net income for the current year.
InvestingPro Tips indicate that the stock's price movements have been quite volatile, offering a strong return of 55.97% over the last year and an impressive 68.44% return over the last three months. However, analysts do not anticipate Zevra Therapeutics will be profitable this year, and the company has not been profitable over the last twelve months. These insights can be crucial for investors considering the potential risks and rewards associated with the stock.
For those seeking more in-depth analysis, InvestingPro provides additional tips on Zevra Therapeutics. Interested readers can find a wealth of further information, including 11 more InvestingPro Tips, by visiting https://www.investing.com/pro/ZVRA.
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