On Thursday, Goldman Sachs (NYSE:GS) adjusted its outlook on Viridian Therapeutics (NASDAQ: VRDN), raising the price target to $31.00 from $25.00 while maintaining a Buy rating on the company's shares. The adjustment follows Viridian's recent announcement of positive results from its Phase 3 THRIVE trial for the drug veligrotug (VRDN-001), which is being developed to treat moderate-to-severe active Thyroid Eye Disease (TED).
The trial reported a proptosis response rate of 70%, with a placebo-adjusted response of 64%, alongside hearing adverse events (AEs) at a 5.5% placebo-adjusted rate. These outcomes surpassed Goldman Sachs' expectations, which were based on a comparative analysis with Tepezza, a previously approved drug for the same condition.
The analyst from Goldman Sachs highlighted the rapid onset of action and the diplopia responses observed with veligrotug, suggesting that it could present a clinical profile potentially superior to that of Tepezza. This includes the advantage of a shorter 5-dose regimen. The positive trial results are seen as a significant step in not only advancing veligrotug but also in de-risking the upcoming THRIVE-2 readout for chronic TED and the development of VRDN-003, a similar molecule to veligrotug.
The THRIVE trial's findings are expected to enhance Viridian Therapeutics' commercial prospects, as the company continues to progress through the development pipeline. The trial's success has been a key factor in Goldman Sachs' updated valuation of the company's stock. The raised price target reflects the firm's confidence in veligrotug's potential market performance and its competitive edge within the therapeutic landscape for TED.
In other recent news, Viridian Therapeutics has reported encouraging results from its phase 3 THRIVE trial, testing VRDN-001 in patients with active Thyroid Eye Disease (TED). The trial met all primary and secondary endpoints, indicating certain advantages of VRDN-001 over Tepezza in terms of efficacy and safety. This success led to Needham, H.C. Wainwright, and BTIG reiterating their Buy ratings and raising their price targets for Viridian. B.Riley also increased its price target, maintaining a neutral rating.
In addition, Viridian initiated a public offering of $150 million of its common stock and Series B non-voting convertible preferred stock, managed by Jefferies, Goldman Sachs & Co. LLC, Stifel, and RBC Capital Markets. The proceeds will be used for clinical development programs, working capital, and general corporate purposes.
Finally, Viridian has completed enrollment for its Phase 3 trial of VRDN-001, with top-line results expected in September 2024. The company also initiated two global phase 3 trials, REVEAL-1 and REVEAL-2, for VRDN-003, a subcutaneous form of the antibody.
InvestingPro Insights
Recent analysis from InvestingPro provides a deeper financial perspective on Viridian Therapeutics (NASDAQ: VRDN). With a market capitalization of approximately $1.27 billion, Viridian holds more cash than debt on its balance sheet, indicating a solid financial position to support ongoing clinical trials and potential commercialization efforts. InvestingPro Tips highlight that the company has strong return metrics over the last week, month, and three months, with respective returns of 46.99%, 29.5%, and 56.4%. This performance reflects investor optimism following the positive trial results, despite analysts revising earnings downwards for the upcoming period and the stock being in overbought territory based on the Relative Strength Index (RSI).
However, it's worth noting that Viridian's revenue in the last twelve months as of Q2 2024 was just $0.29 million, with a sharp decline in revenue growth of -80.41%. The company's gross profit margin stood at an extreme negative, which, alongside the lack of profitability over the past year, may raise concerns about the financial sustainability of the company without successful commercialization of its products. Viridian does not pay a dividend to shareholders, which is common for growth-focused biotech firms reinvesting earnings into research and development.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available at the InvestingPro platform, which can provide further insights into Viridian's financial health and market potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.