On Monday, BTIG reaffirmed its Buy rating on shares of Glaukos Corporation (NYSE:GKOS), maintaining a price target of $139.00. The endorsement follows the recent announcement that AbbVie (NYSE:ABBV) and Ripple Therapeutics have entered into a partnership to develop a new drug delivery implant, RTC-620. This product is considered to potentially be a next-generation alternative to AbbVie's own Durysta implant.
The partnership, disclosed last Tuesday, aims to advance Ripple's RTC-620, a fully biodegradable intracameral implant designed for sustained drug release with the capability for repeated dosing. The implant is in the early stages of development, having completed preliminary studies in canines. The goal for RTC-620 is to offer a six-month repeatable treatment that leaves no residual material in the eye, allowing for retreatment without complications.
RTC-620 and Durysta share similarities, including their bimatoprost composition and cylindrical rod design. They are both placed in the anterior chamber of the eye. However, RTC-620 is smaller than Durysta, which, according to early studies, results in minimal to no loss of corneal endothelial cells and no residual polymer.
AbbVie's involvement in the project is significant, as the pharmaceutical giant will be providing the necessary funding to bring RTC-620 to fruition. If successful, AbbVie would license the product from Ripple. Despite the potential, the new implant is still several years from market readiness, with First-In-Human (FIH) studies yet to commence.
BTIG's commentary suggests that AbbVie's interest in RTC-620 may indicate a search for an improved solution to Durysta, which could face competition from Glaukos' iDose device in the future.
InvestingPro Insights
Following BTIG's reaffirmation of a Buy rating for Glaukos Corporation (NYSE:GKOS) with a price target of $139.00, insights from InvestingPro provide a deeper financial perspective on the company. Glaukos has been recognized for its low price volatility, which may appeal to investors seeking stability in their portfolio. Additionally, the company's liquid assets surpass its short-term obligations, indicating a solid financial footing for near-term operations.
Despite analysts' expectations that the company may not be profitable this year, Glaukos has experienced a significant price uptick over the last six months, with a 45.07% total return in that period. The stock is also trading near its 52-week high, at 93.54% of this peak. These metrics suggest investor confidence may be buoyed by the company's recent performance and potential future growth.
InvestingPro data highlights a market capitalization of $7.02 billion and a high revenue growth of 15.14% over the last twelve months as of Q2 2024. However, it's worth noting that Glaukos is trading at a high revenue valuation multiple, with a Price / Book ratio of 10.55, which may suggest the stock is priced optimistically relative to its book value.
For investors looking for a more comprehensive analysis, there are additional InvestingPro Tips available, which could provide further guidance on Glaukos's financial health and market position. Visit InvestingPro for more insights: https://www.investing.com/pro/GKOS.
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