Needham has increased its price target on shares of Viridian Therapeutics (NASDAQ: VRDN) to $38, up from the previous target of $30, while reiterating a Buy rating on the stock.
The adjustment comes in response to the company's announcement of successful results from its phase 3 THRIVE trial, which tested VRDN-001 in patients with active Thyroid Eye Disease (TED).
The trial met all primary and secondary endpoints, with data indicating certain advantages of VRDN-001, also known as veligrotug or veli, over Tepezza in terms of efficacy and safety/tolerability.
The positive outcome of the THRIVE trial has been seen as significantly reducing the risks associated with Viridian's TED programs, which also include VRDN-003, positioning them as promising future treatments for TED.
Despite the stock’s approximate 30% increase in value on Monday, Needham's analysis suggests that there is still considerable room for growth, especially considering Viridian's role in the approximately $2 billion TED market. The raised price target reflects the reduced risk profile following the THRIVE trial's success for both VRDN-001 and VRDN-003.
In other recent news, Viridian Therapeutics has made significant strides in its clinical trials for thyroid eye disease (TED) treatments. The company's THRIVE-1 study reported promising results with its drug VRDN-001, showing a significant reduction in proptosis, a common TED symptom. Analysts at H.C. Wainwright and BTIG have reiterated their Buy ratings, setting price targets of $27.00 and $56.00 respectively, reflecting confidence in the company's ongoing trials.
In addition, Viridian has initiated a public offering of $150 million of its common stock and Series B non-voting convertible preferred stock. The offering is managed by Jefferies, Goldman Sachs (NYSE:GS) & Co. LLC, Stifel, and RBC Capital Markets. The proceeds from the offering will be used for clinical development programs, working capital, and general corporate purposes.
Furthermore, Viridian Therapeutics has 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. Viridian also initiated two global phase 3 trials, REVEAL-1 and REVEAL-2, for VRDN-003, a subcutaneous form of the antibody.
InvestingPro Insights
Viridian Therapeutics (NASDAQ: VRDN) has recently captured the attention of investors and analysts alike with its promising trial results. As Needham raises its price target, it's worth noting that Viridian holds more cash than debt on its balance sheet, an InvestingPro Tip that suggests financial stability and resilience. Additionally, liquid assets exceed short-term obligations, indicating the company's ability to cover immediate liabilities. These financial health indicators are particularly important as the company advances its TED programs.
InvestingPro Data further reveals that Viridian has experienced significant returns over the last week, month, and three months, with figures standing at 26.35%, 24.83%, and 39.3% respectively. This momentum reflects investor optimism following the THRIVE trial outcomes. However, it is also important to consider that analysts have revised their earnings downwards for the upcoming period, and the company is not expected to be profitable this year, as per InvestingPro Tips. With a current market cap of approximately $1.2 billion and a high revenue valuation multiple, Viridian's stock price movements should be watched closely by potential investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on Viridian Therapeutics, providing a more comprehensive understanding of the company's financial landscape and future prospects.
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