On Tuesday, Zevra Therapeutics, Inc. (NASDAQ:ZVRA) saw its stock price target increased by Maxim Group from $18.00 to $25.00, while the firm maintained a Buy rating on the stock. This adjustment follows the recent FDA approval of Zevra's medication Miplyffa, used in combination with miglustat, for the treatment of neurological manifestations of Niemann-Pick disease type C (NPC). This marks the first approval of its kind in the United States.
The company was also awarded a priority review voucher (PRV) alongside the approval. Sales of such vouchers have recently surpassed $100 million. Zevra Therapeutics is reported to be financially robust, with a pro forma cash balance of $114 million in the second quarter of 2024 and a financial runway extending to 2027, not accounting for Miplyffa sales or PRV.
Maxim Group anticipates a successful launch of Miplyffa due to the existing commercial infrastructure from Olpruva, approximately 300 patients already receiving off-label treatment, and the company's participation in the U.S. portion of the Expanded Access Program (EAP). The firm expects a steeper launch trajectory for the drug, leading to an increase in revenue estimates.
The decision to raise the price target is also influenced by a reduction in the revenue risk adjustment to 10%, down from 40%. This change reflects the firm's increased confidence in the revenue potential following the FDA's approval of Miplyffa. The upgraded price target aims to reflect these positive developments and the anticipated impact on Zevra Therapeutics' financial performance over the next 12 months.
In other recent news, Zevra Therapeutics received a rare pediatric disease priority review voucher (PRV), which can potentially provide a significant financial boost to the company. Moreover, the company's recent Q2 2024 earnings call reported a net revenue of $4.4 million and a net loss of $19.9 million.
Various analyst firms have also revised their outlook on Zevra Therapeutics. Roth/MKM raised the company's stock price target to $21.00 from $19.00, while maintaining a Buy rating. JMP Securities initiated coverage on Zevra, assigning a Market Outperform rating and setting a price target of $17.00.
On the other hand, Canaccord Genuity revised its outlook on Zevra, reducing the price target but maintaining a Buy rating. These recent developments showcase Zevra Therapeutics' commitment to addressing unmet medical needs in the rare disease sector.
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