RBC Capital has adjusted its outlook for Viridian Therapeutics (NASDAQ: VRDN), raising the price target to $44 from $35 while maintaining an Outperform rating.
The adjustment follows the successful Phase III THRIVE trial results for the company's drug, veligrotug (Veli), in treating active Thyroid Eye Disease (TED).
The recent trial demonstrated that Veli met all primary and secondary endpoints, showing equivalence to Amgen (NASDAQ:AMGN)'s Tepezza with a 70% absolute responder rate, which is 64% when adjusted for placebo effects, with a highly statistically significant p-value of less than 0.0001. The drug also showed a favorable tolerability profile, with hearing adverse events lower than expected at 5.5%.
Veli, administered at 10 mg/kg every three weeks, showed a rapid onset and relief of symptoms after just one infusion.
The efficacy, combined with fewer doses, less infusion time, and reduced drug exposure, positions Veli as a potentially best-in-class treatment option in the TED market, according to RBC Capital.
The analyst also noted that the THRIVE data provides increased confidence and de-risks the upcoming THRIVE-2 trial in chronic TED, which is over-enrolled with topline results expected by the end of 2024.
Additionally, the REVEAL-1 and REVEAL-2 programs for VRDN-003 SC are on track, with topline results anticipated in the first half of 2026.
Based on the improved chances of success for Veli, now estimated at 75% up from 60%, and the progress in de-risking VRDN-003 SC, RBC Capital has increased its price target for Viridian Therapeutics.
InvestingPro Insights
Following RBC Capital's optimistic outlook on Viridian Therapeutics (NASDAQ:VRDN), the InvestingPro platform offers additional context that may be useful for investors considering this stock. According to InvestingPro data, Viridian Therapeutics currently holds a market capitalization of $1.32 billion. Despite the company's significant return over the last week of 46.91%, analysts have noted that Viridian has been trading at a high revenue valuation multiple, with a Price/Book ratio as of the last twelve months of Q2 2024 at 4.01.
InvestingPro Tips highlight that Viridian holds more cash than debt on its balance sheet, which can be a positive sign of financial stability. Additionally, three analysts have revised their earnings upwards for the upcoming period, potentially indicating confidence in the company's future performance. On the other hand, the company is not expected to be profitable this year, and the stock's Relative Strength Index (RSI) suggests it is in overbought territory, which may warrant caution among investors.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/VRDN, providing further insights into Viridian's financial health and market position.
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