On Tuesday, RBC Capital Markets adjusted its outlook on shares of Viridian Therapeutics (NASDAQ:VRDN), increasing the price target to $47.00 from $44.00, while maintaining an Outperform rating on the stock.
The revision follows the announcement of positive results from the THRIVE-2 study for the company's drug veligrotug (Veli') in treating chronic thyroid eye disease (TED). With a current market capitalization of $1.7 billion and trading at $21.86, the stock has shown remarkable momentum, gaining over 76% in the past six months according to InvestingPro data.
The analyst from RBC Capital Markets highlighted the significance of the study's findings, noting Veli's 56% absolute proptosis responder rate, which is 48% higher than placebo. Moreover, Veli demonstrated a 56% diplopia response, with a 31% improvement over placebo, and a complete resolution in 32% of patients, compared to 15% with placebo.
This marks the first pivotal study to show statistically significant improvement in diplopia, potentially setting Veli apart from competing treatments like Amgen (NASDAQ:AMGN)'s Tepezza. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 18.55, suggesting robust financial flexibility to support its drug development programs.
The THRIVE-2 study's results are seen as a major achievement for Viridian, potentially differentiating Veli in the market. The drug's rapid onset of effect after a single infusion and safety profile consistent with previous findings further support its potential. Patients experienced a 9.6% placebo-adjusted prevalence of hearing adverse events, which was anticipated and aligns with the drug's safety expectations.
RBC Capital anticipates that Viridian will leverage the success of both the THRIVE and THRIVE-2 studies in its upcoming regulatory submissions. The company is expected to file a Biologics License Application (BLA) in the second half of 2025. The positive outcomes from the THRIVE-2 study are seen as pivotal in de-risking the program and affirming the strategic and commercial value of Veli.
The analyst concluded that the progress made throughout 2024 and the de-risking provided by the THRIVE-2 results justify the increased price target for Viridian Therapeutics. The Outperform, Speculative Risk rating is reiterated, reflecting confidence in the company's trajectory and the potential market position of its product.
InvestingPro subscribers can access 10 additional investment tips and comprehensive analysis for VRDN, including detailed financial health metrics and growth projections. The stock currently trades above its InvestingPro Fair Value, with analyst targets ranging from $22 to $61, suggesting significant potential upside in analysts' view.
In other recent news, Viridian Therapeutics has reported significant progress in its clinical trials for thyroid eye disease (TED) treatments. The company's lead asset, veligrotug, successfully met all primary and secondary endpoints in its Phase III THRIVE trials.
Notably, veligrotug demonstrated significant improvements in diplopia, commonly known as double vision, and a notable reduction in eye bulging. These results have been acknowledged by several analyst firms, including H.C. Wainwright, Oppenheimer, TD Cowen, Stifel, and Needham, which have maintained Buy ratings for the company's stock and adjusted their price targets upwards.
Beyond veligrotug, Viridian Therapeutics is also advancing a subcutaneous program, VRDN-003, which is currently in Phase III development. This development has further bolstered the company's standing in the TED treatment landscape.
On the financial front, Viridian has initiated a public offering of $150 million of its common stock and Series B non-voting convertible preferred stock. The proceeds from this offering will be used for clinical development programs, working capital, and general corporate purposes. These are the recent developments in Viridian Therapeutics' ongoing efforts to advance treatments for TED.
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