On Tuesday, Citi reiterated its Buy rating for Mirum Pharmaceuticals (NASDAQ:MIRM) with a steady price target of $37.00. The firm anticipates potential positive developments from the company's ongoing clinical trials.
Mirum Pharmaceuticals is currently conducting an interim analysis of its Phase 2b VISTAS trial for volixibat in the treatment of primary sclerosing cholangitis (PSC), a chronic liver disease. The results of this analysis are expected in the first half of 2024. Citi's optimism is based on the belief that volixibat will likely meet the company's undisclosed benefit threshold, which would allow the trial to advance to a pivotal phase.
The progression to a pivotal phase is seen as a critical step for Mirum Pharmaceuticals, as it could significantly enhance the confidence of the investment community in the PSC program. Moreover, the positive outcome of the VISTAS trial could also influence the perception of volixibat's potential in treating primary biliary cholangitis (PBC), a separate liver condition. The results for the PBC readout are anticipated to be released shortly after the VISTAS trial findings.
Citi suggests that the forthcoming updates regarding the clinical trials could lead to an increase in the stock's value. The firm's continued support with a Buy rating reflects confidence in Mirum Pharmaceuticals' prospects and the potential market impact of its product candidate, volixibat.
InvestingPro Insights
As Mirum Pharmaceuticals (NASDAQ:MIRM) approaches critical milestones in its clinical development pipeline, real-time data from InvestingPro offers additional context for investors considering Citi's Buy rating. According to InvestingPro, analysts have revised their earnings downwards for the upcoming period and do not expect the company to be profitable this year. This aligns with the company's current financials, where Mirum is operating with a negative P/E ratio of -5.98 and a substantial revenue growth of 141.85% over the last twelve months as of Q4 2023.
On a positive note, Mirum's liquid assets exceed its short-term obligations, which suggests financial resilience in the short term. Moreover, the company is trading near its 52-week low, potentially providing a more attractive entry point for investors. It's worth noting that while Mirum does not pay a dividend, reflecting its focus on reinvesting into its clinical programs, the company has managed a gross profit margin of 74.76% over the last twelve months.
To gain further insights into Mirum Pharmaceuticals' financial health and future prospects, interested parties can explore additional InvestingPro Tips available on the platform. Currently, there are six more tips listed that could help investors make a more informed decision. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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