TD Cowen bullish on Viridian stock—veligrotug’s potential in TED drives optimism

On Monday, TD Cowen initiated coverage on Viridian Therapeutic (NASDAQ: VRDN), issuing a Buy rating for the biotechnology company's stock. The firm's analyst cited the potential of Viridian's lead asset, veligrotug, which is currently in development as a therapy for thyroid eye disease (TED). The treatment is designed to lessen the burden of intravenous delivery for patients.

Veligrotug, an anti-IGF-1R therapy, has shown promising results in its initial Phase III trial data among active TED patients. The analyst noted the strength of these results and mentioned that additional chronic data is expected to be released in December. The anticipation of this data release could be a significant milestone for the company.

In addition to veligrotug, Viridian Therapeutics is also advancing a subcutaneous program, VRDN-003, which is in Phase III development. This program represents another avenue through which the company is seeking to address the needs of patients with thyroid eye disease, potentially offering a more convenient administration route.

The coverage initiation reflects a positive outlook on Viridian Therapeutics' stock, with the analyst expressing the view that the shares are currently undervalued when considering the market opportunity for treating TED alone. This suggests that the firm sees significant growth potential for Viridian based on its current pipeline and the anticipated demand for its therapies.

The analyst's commentary underscores the progress Viridian Therapeutic has made in its clinical programs and the potential market opportunity that lies ahead. With key data expected to be released in December, stakeholders may be closely watching for the results as they could further influence the company's stock performance.

In other recent news, Viridian Therapeutics has seen significant advancements in its clinical trials for thyroid eye disease (TED) treatments. H.C. Wainwright raised its price target on Viridian's shares, citing the potential of Viridian's veligrotug to meet endpoints in the chronic TED study. Veligrotug's promising results in the THRIVE-1 study and potential to surpass Tepezza as the leading treatment for TED were highlighted, with a lower incidence of hearing impairment observed in the study.

Stifel also maintained a Buy rating on Viridian while raising the price target, following the positive Phase 3 THRIVE-1 study results for veligrotug. This was echoed by Needham, which maintained its Buy rating on Viridian shares, citing recent clinical trial results.

Goldman Sachs (NYSE:GS) reiterated its Buy rating on Viridian, showing optimism for the upcoming results from Viridian's Phase 3 THRIVE-2 study in chronic TED. RBC Capital also adjusted its outlook for Viridian, raising the price target while maintaining an Outperform rating.

In addition, 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. These are the recent developments in Viridian's ongoing efforts.

InvestingPro Insights

To complement TD Cowen's positive outlook on Viridian Therapeutics (NASDAQ: VRDN), recent data from InvestingPro provides additional context for investors. Despite the company's promising pipeline, InvestingPro Tips highlight that Viridian is not currently profitable and has suffered from weak gross profit margins. This aligns with the company's developmental stage, as it invests heavily in research and clinical trials for veligrotug and VRDN-003.

However, it's worth noting that Viridian holds more cash than debt on its balance sheet, which could be crucial for funding ongoing clinical trials and potential commercialization efforts. Additionally, the company has seen a strong return over the last three months, with InvestingPro Data showing a 34.22% price total return in that period. This recent performance may reflect growing investor confidence in Viridian's pipeline, particularly as the company approaches the release of additional chronic data for veligrotug in December.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Viridian Therapeutics, providing deeper insights into the company's financial health and market position.

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