On Tuesday, Stifel maintained a Buy rating on Viridian Therapeutics (NASDAQ:VRDN) while raising the price target to $41 from $40. This adjustment follows the positive Phase 3 THRIVE-1 study results for Veligrotug, reported back in September. The analyst expressed continued confidence in the upcoming Phase 3 THRIVE-2 study data, which is expected in December and will involve a broader chronic patient population.
The analyst anticipates that an absolute proptosis response rate of 50-60%, which aligns with the Phase 4 Tepezza study, would be considered successful. Furthermore, any additional differentiation from Viridian's broader patient population, as compared to Tepezza's, could provide further upside.
In a scenario where efficacy is comparable to Tepezza, the analyst suggests that Viridian's shares could experience a 10-20% increase. However, they also note that the potential downside is significant, especially considering the implications for the company's regulatory filing planned for the next year.
In addition to the THRIVE studies, Viridian Therapeutics has shown progress in its FcRn franchise. Recent interim non-human primate data from the half-life extended Fc-fragment VRDN-008 demonstrated a threefold increase in half-life compared to efgartigimod, along with sustained IgG suppression. The forthcoming challenge will be to translate these results to human trials. Nonetheless, management remains confident that these findings support their objective of achieving a competitive self-administered subcutaneous profile, potentially allowing for monthly dosing.
In other recent news, Viridian Therapeutics has seen significant progress in their clinical trials for thyroid eye disease (TED) treatments. Following the successful Phase III THRIVE trial results, several analyst firms have adjusted their outlook on Viridian. Needham reiterated its Buy rating and increased its price target on Viridian shares to $38, while Goldman Sachs maintained a Buy rating with a price target of $31. RBC Capital also raised the price target to $44, maintaining an Outperform rating.
The Phase III THRIVE trial demonstrated that Viridian's drug, veligrotug, met all primary and secondary endpoints, showing potential advantages over the existing treatment, Tepezza. This success has reduced the risks associated with Viridian's TED programs, including VRDN-003.
In addition to these developments, Viridian initiated a public offering of $150 million of its common stock and Series B non-voting convertible preferred stock. The proceeds will be used for clinical development programs, working capital, and general corporate purposes. The offering is managed by Jefferies, Goldman Sachs & Co. LLC, Stifel, and RBC Capital Markets.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Viridian Therapeutics' (NASDAQ:VRDN) financial position and market performance, complementing the analyst's optimistic outlook. The company's stock has shown remarkable strength, with InvestingPro data indicating a significant 86.85% price total return over the past year and an impressive 68.15% return in the last three months. This aligns with the positive sentiment surrounding the THRIVE-1 study results and anticipation for the THRIVE-2 data.
However, investors should note that Viridian is not yet profitable, with a negative P/E ratio of -8.19 for the last twelve months as of Q2 2024. This is consistent with the company's developmental stage and heavy investment in clinical trials. An InvestingPro Tip highlights that analysts do not anticipate the company will be profitable this year, which is typical for biotechnology firms in the midst of pivotal trials.
On a positive note, another InvestingPro Tip reveals that Viridian holds more cash than debt on its balance sheet, suggesting financial stability as it progresses through its clinical programs. This strong cash position could be crucial for supporting ongoing research and potential commercialization efforts for Veligrotug and other pipeline candidates.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Viridian Therapeutics, providing a deeper understanding of the company's financial health and market position.
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