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Ultragenyx gains FDA breakthrough status for OI drug

Published 10/07/2024, 10:26 PM
RARE
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Today, Ultragenyx Pharmaceutical (NASDAQ:RARE) Inc., a biopharmaceutical company, announced that the U.S. Food and Drug Administration (FDA) has granted Breakthrough Therapy Designation to its drug setrusumab (UX143). This designation is for the treatment aimed at reducing the risk of fractures associated with osteogenesis imperfecta (OI) Types I, III, or IV in patients aged two years and older.

The FDA's Breakthrough Therapy Designation is reserved for drugs that show potential to address serious or life-threatening diseases and demonstrate significant improvement over existing therapies on one or more clinically significant endpoints. The designation for setrusumab is based on positive results from the Phase 2 portion of the Orbit study and the completed Phase 2b Asteroid study. These studies showed a rapid and meaningful decrease in fracture rate in patients.

This news is based on the latest 8-K filing by Ultragenyx with the SEC, which provides a transparent view of the company's current developments without any promotional content.

In other recent news, Ultragenyx Pharmaceutical Inc. made noteworthy advancements in its drug development and financial performance.

In financial developments, Ultragenyx reported strong Q2 earnings, with total revenue reaching $147 million, leading to an upward revision of its annual revenue guidance. The company is also making progress with its UX701 gene therapy for Wilson disease, with a recent study showing improvements in copper metabolism among patients.

Analysts from Leerink Partners and TD Cowen have maintained positive outlooks on Ultragenyx, reiterating Outperform and Buy ratings respectively. These ratings are supported by promising results from the Phase 2 Orbit trial for setrusumab and the Phase 1/2/3 Cyprus2+ study of UX701.

These are some of the recent developments that have kept Ultragenyx in the spotlight for investors.

InvestingPro Insights

Ultragenyx Pharmaceutical's recent FDA Breakthrough Therapy Designation for setrusumab aligns with the company's strong revenue growth trajectory. InvestingPro data shows a 35.75% quarterly revenue growth in Q2 2023, indicating the company's expanding market presence. This growth is particularly significant given the potential market for osteogenesis imperfecta treatments.

However, investors should note that Ultragenyx is not currently profitable, with a negative gross profit margin of -49.52% over the last twelve months. This is consistent with the company's development stage and heavy investment in research and development, as highlighted in the article's discussion of clinical trials and regulatory processes.

InvestingPro Tips suggest that 8 analysts have revised their earnings upwards for the upcoming period, potentially reflecting optimism about setrusumab's prospects. Additionally, the company's liquid assets exceed short-term obligations, providing financial flexibility as it navigates the costly drug development process.

For a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide deeper insights into Ultragenyx's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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