Viridian Therapeutics (NASDAQ: VRDN) has received an updated price target from B.Riley, increasing it to $22.00, up from the previous target of $20.00. The firm has maintained a Neutral rating on the stock.
The adjustment follows the announcement of top-line results from Viridian's Phase III THRIVE study, which evaluated VRDN-001 (veligrotug) in patients with thyroid eye disease.
The study's findings were in line with expectations, showing a satisfactory efficacy and safety profile for veligrotug. According to the firm's analysis, some outcomes slightly surpassed their base case predictions, while others were marginally below.
However, the overall results suggest that veligrotug could be an approvable medication, potentially capturing a moderate portion of the market share currently held by Tepezza™.
Based on the assumption of a 25-35% market penetration of Tepezza's share, annual sales projections for veligrotug range between $500 million and $700 million. The updated price target reflects a revised probability of success for the drug, taking into account the recent study outcomes and the company's concurrent equity offering.
The announcement of the Phase III study results and the subsequent equity offering have provided new data points for market analysts.
In other recent news, Viridian Therapeutics, a biotechnology firm, has 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 (NYSE:GS) & Co. LLC, Stifel, and RBC Capital Markets.
Additionally, Viridian reported positive results from its Phase 3 THRIVE trial for veligrotug, meeting all primary and secondary endpoints. The company has completed enrollment for its Phase 3 trial of VRDN-001, with top-line results expected in September 2024. Furthermore, Viridian initiated two global phase 3 trials, REVEAL-1 and REVEAL-2, for VRDN-003, a subcutaneous form of the antibody.
Financially, Viridian held $571.4 million in cash and equivalents as of June 30, 2024. Analyst firms, including Goldman Sachs, RBC Capital, and Wolfe Research, project potential revenue from VRDN-001 to reach approximately $690 million worldwide by 2027.
Analysts, including those from Stifel and BTIG, have increased their price targets for Viridian Therapeutics, reflecting confidence in the company's ongoing trials and the potential of its TED treatments. These are the recent developments in the company's ongoing efforts to establish a strong presence in the TED market with innovative treatment options.
InvestingPro Insights
Following the positive outlook from B.Riley on Viridian Therapeutics (NASDAQ:VRDN), InvestingPro data and tips offer additional insights into the company's financial health and market performance. With a market capitalization of $1.2 billion, Viridian Therapeutics is a significant player in the biotech space. Despite not being profitable over the last twelve months, the company has demonstrated strong returns, with a 26.35% increase over the last week and a 39.3% rise over the last three months. These figures reflect a growing investor confidence which may be tied to the promising results of their Phase III THRIVE study.
One of the InvestingPro Tips that stands out is the fact that Viridian holds more cash than debt on its balance sheet, which is a positive sign for the company's financial stability. Additionally, the company's liquid assets exceed its short-term obligations, providing a cushion for operational needs. However, analysts have revised their earnings downwards for the upcoming period, and they do not anticipate the company will be profitable this year. These mixed signals suggest that while the company has potential, there are still risks involved for investors.
For those considering an investment in Viridian Therapeutics, the InvestingPro platform offers even more in-depth analysis and tips—there are currently 11 additional tips available that could provide further guidance. With a fair value estimate from InvestingPro at $11.95, compared to the analyst target of $36, investors should weigh these insights carefully against market optimism and the potential of VRDN-001 (veligrotug).
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