On Monday, Goldman Sachs (NYSE:GS) reiterated its Buy rating on Viridian Therapeutics (NASDAQ:VRDN) with a consistent price target of $31.00. The firm's optimism hinges on the upcoming presentation of results from Viridian's Phase 3 THRIVE-2 study in chronic thyroid eye disease (TED) before the end of 2024. The study focuses on the company's drug candidate, veligrotug (veli), which has previously shown promising results in the active TED THRIVE study presented in September.
The management at Viridian expects the upcoming results to align with those from a Phase 4 chronic study of Tepezza, another treatment for TED, without specifying exact expectations for proptosis response or other endpoints. They noted the variability in proptosis responses observed in Tepezza's study and the differences in inclusion criteria, which complicate direct comparisons. The THRIVE study is considered more crucial in establishing veli's profile, while the THRIVE-2 study is seen as a necessary component for the Biologics License Application (BLA) package.
Goldman Sachs believes that the success of the THRIVE study not only reduces the risk for the THRIVE-2 study but also indicates veli's potential to outperform Tepezza. The firm anticipates that veli could demonstrate a placebo-adjusted proptosis response rate of approximately 40% or higher and a safety profile similar to that observed in the THRIVE study, which reported around 5.5% placebo-adjusted hearing adverse events (AEs). The upcoming study results are highly anticipated by both the firm and the company, with the potential to further validate veli's differentiation in the market for TED treatments.
In other recent news, Viridian Therapeutics has garnered attention from several analyst firms following the successful Phase III THRIVE trial results for its drug, veligrotug. RBC Capital raised the price target for Viridian to $44 from $35, maintaining an Outperform rating, citing the drug's promising results in treating active Thyroid Eye Disease (TED). Goldman Sachs also adjusted its outlook, raising the price target to $31.00 from $25.00 and maintaining a Buy rating.
Needham increased its price target on Viridian shares to $38, up from the previous $30, reiterating a Buy rating. H.C. Wainwright maintained its Buy rating and $27.00 price target, while B.Riley increased its price target to $22.00, maintaining a Neutral rating.
The Phase III THRIVE trial demonstrated that veligrotug met all primary and secondary endpoints, showing potential advantages over the existing treatment, Tepezza. The positive results have reduced the risks associated with Viridian's TED programs, including VRDN-003.
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. The offering is managed by Jefferies, Goldman Sachs & Co. LLC, Stifel, and RBC Capital Markets.
InvestingPro Insights
Recent InvestingPro data provides additional context to Viridian Therapeutics' (NASDAQ:VRDN) financial position and market performance. The company's market capitalization stands at $1.76 billion, reflecting investor interest in its potential. Despite the optimistic outlook from Goldman Sachs, it's important to note that Viridian is currently not profitable, with a negative P/E ratio of -7.72 over the last twelve months as of Q2 2024.
InvestingPro Tips highlight that Viridian holds more cash than debt on its balance sheet, which could be crucial for funding ongoing clinical trials and potential commercialization efforts for veligrotug. Additionally, the company has seen a strong return over the last year, with a 86.19% price total return, aligning with the positive sentiment surrounding its drug development progress.
For investors considering Viridian's long-term potential, it's worth noting that InvestingPro offers 11 additional tips that could provide further insights into the company's financial health and market position. These additional tips could be particularly valuable given the upcoming THRIVE-2 study results and their potential impact on Viridian's future.
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