On Friday, Stifel analysts increased their price target for Disc Medicine (NASDAQ:IRON) shares to $94.00, up from the previous $90.00. Currently trading at $57.07 with a market capitalization of $1.7 billion, the stock has shown significant volatility with a beta of 2.94. The firm continues to recommend a Buy rating for the stock. According to InvestingPro data, six analysts have recently revised their earnings expectations upward, with price targets ranging from $73 to $118. The adjustment follows an announcement earlier in the week that Disc Medicine has received authorization to submit their new drug application (NDA) for bitopertin for accelerated approval.
The Stifel analyst expressed confidence in the drug's prospects, estimating an 85% chance of approval and anticipating a commercial launch for the erythropoietic protoporphyria (EPP) treatment to begin in 2026. InvestingPro's financial health assessment rates the company as "GOOD," with a notably strong current ratio of 19.36, indicating robust liquidity to fund its development pipeline. The analyst highlighted that forthcoming phase 2 data on Myelofibrosis for DISC-0974 could strengthen the drug's position as a leading candidate and bolster investor confidence in its potential across three FDA-defined patient subgroups.
Additionally, the analyst noted that while data presented at the American Society of Nephrology (ASN) meeting in 2024 on chronic kidney disease (CKD) showed the importance of hepcidin, the hemoglobin response might not have met investor expectations. Despite this, the analyst believes that iron levels were appropriately increased, indicating a rise in hemoglobin production, even though the effect was not long-lasting. The upcoming multi-dose data are expected to provide a more comprehensive understanding of the drug's impact on iron and hemoglobin levels at steady-state, which could potentially lead to an expansion into the larger CKD market.
The new price target of $94 per share is based on a revised probability of success (PoS) estimate for bitopertin, as per the analyst's comments. For deeper insights into Disc Medicine's valuation and growth prospects, including 12 additional ProTips and comprehensive analyst coverage, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Disc Medicine has been the subject of several favorable developments and analyst upgrades. Jefferies maintained a Buy rating with a $111 price target, citing anticipation of positive data from a presentation on DISC-0974™. On the same note, H.C. Wainwright increased its price target to $118, maintaining a Buy rating due to recent developments involving Disc Medicine's drug candidates.
Scotiabank (TSX:BNS) also increased its price target for Disc Medicine to $70, retaining a Sector Outperform rating following positive feedback from the FDA concerning bitopertin, a treatment for erythropoietic protoporphyria (EPP). BMO Capital Markets updated its outlook, increasing the price target to $112 while maintaining an Outperform rating. This adjustment followed a positive regulatory update for bitopertin, a treatment for EPP.
Raymond (NSE:RYMD) James elevated Disc Medicine's stock from Outperform to Strong Buy, setting a new price target of $110.00, following successful end of Phase 2 meeting with the FDA regarding bitopertin. The company also announced a public stock offering of approximately $178 million to advance research and clinical development of its product candidates. Lastly, Disc Medicine welcomed Dr. Rahul Rajan Kaushik as Chief Technical Officer and Dr. Steve Caffé as Chief Regulatory Officer, both with over two decades of experience in the pharmaceutical industry.
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