On Tuesday, Oppenheimer adjusted its outlook on UroGen Pharma (NASDAQ: URGN), reducing the price target to $32 from the previous $34. Despite this change, the firm maintains an Outperform rating on the stock.
The revision follows UroGen Pharma's announcement of net Jelmyto sales totaling $18.8 million, which marks a 9% increase year-over-year but falls short of the anticipated $20.0 million to $21.4 million range. The shortfall was attributed to a more pronounced seasonal impact than expected.
UroGen Pharma's recent performance has been underpinned by the potential of UGN-102, its treatment for low-grade, intermediate-risk non-muscle invasive bladder cancer (NMIBC). Investors are particularly focused on the long-term efficacy of UGN-102 following compelling Phase 3 trial results released in July.
With the upcoming June 13 announcement, stakeholders are eager to learn whether patients who achieved a complete response after three months continued to do so at the 12-month mark. This data will be shared during a virtual investor event scheduled for the same day.
The company's management anticipates that the percentage of patients maintaining a complete response after a year could be in the mid-60s, drawing parallels to subgroup findings from the ATLAS study. With the rolling New Drug Application (NDA) submission expected to be completed in the next quarter, UroGen Pharma could potentially receive FDA approval as early as the beginning of 2025.
The firm's optimistic stance is fueled by the approaching data reveal and the strategic milestones on UroGen Pharma's horizon.
InvestingPro Insights
As UroGen Pharma (NASDAQ: URGN) navigates through its critical phases, real-time data from InvestingPro offers a deeper understanding of the company's financial health and market performance. The company holds a market capitalization of approximately $445.98 million, reflecting its current standing in the market. Despite the challenges in meeting sales expectations, UroGen Pharma boasts an impressive gross profit margin of 89.53% over the last twelve months as of Q1 2024, indicating efficient cost management relative to its revenues.
InvestingPro Tips highlight that UroGen Pharma has more cash than debt on its balance sheet, providing it with a level of financial flexibility. Additionally, the company's liquid assets surpass its short-term obligations, suggesting a stable short-term financial position. This is particularly relevant as the company continues to invest in its pipeline and prepares for potential FDA approval. On the flip side, analysts have expressed concern that the company will not be profitable this year and is quickly burning through cash, which is a critical consideration for investors looking at the long-term viability of UroGen Pharma.
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