Ascendis Pharma A/S: Strong Growth and Strategic Challenges

Ascendis Pharma A/S ((ASND)) has held its Q3 earnings call. Read on for the main highlights of the call.

Ascendis Pharma A/S Reports Strong Revenue Growth Amidst Challenges

The recent earnings call for Ascendis Pharma A/S painted a picture of robust revenue growth and global market expansion, particularly for their products Eurvipath and Skytrofa. The company celebrated regulatory approvals and a positive operating profit, though it acknowledged ongoing challenges with insurance approval conversion rates and increased SG&A expenses due to commercial expansion. Additionally, foreign currency impacts posed a challenge to revenue growth.

Strong Global Launch of Eurvipath

Eurvipath has made a significant impact in the global market, achieving €143 million in revenue for Q3. In the US alone, over 4,250 patients have been prescribed Eurvipath by more than 2,000 healthcare providers. With insurance approval rates at approximately 70%, the product is now available in over 30 countries, marking a successful global launch.

Positive Operating Profit

Ascendis Pharma reported a positive operating profit of €11 million in Q3, a testament to their financial transformation. This positive result reflects sustained revenue and cash flow growth, indicating a promising financial trajectory for the company.

Regulatory Approvals and Progress

The company achieved significant regulatory milestones with FDA approval for TransCon Growth Hormone for adult growth hormone deficiency in the US and MAA authorization in the EU for pediatric growth hormone deficiency. Additionally, TransCon CNP is under priority review in the US, with a PDUFA date set for November 30.

Expansion of Commercial Activities

Skytrofa generated €51 million in revenue, supported by the initiation of a Phase 3 basket trial. TransCon CNP also showed promising trial results, demonstrating improvements in linear growth and other health metrics, further solidifying Ascendis Pharma’s commercial expansion.

Conversion Rate Challenges

Despite the success of Eurvipath, the insurance approval conversion rate remains at 70%. The company is focused on improving this rate over time and aims to reduce the time required for approval conversions.

Foreign Currency Impact

Revenue growth for Q3 was partially offset by foreign currency headwinds, with a €3.6 million impact on Eurvipath and a €1.6 million impact on Skytrofa, highlighting the challenges of operating in a global market.

SG&A Expense Increase

The company’s SG&A expenses rose significantly to €113.4 million in Q3 2025, up from €69.8 million the previous year. This increase reflects the costs associated with global commercial expansion, underscoring the company’s commitment to growth.

Forward-Looking Guidance

Looking ahead, Ascendis Pharma anticipates sustained revenue growth driven by new patient enrollments, geographic expansion, and additional market entries for Eurvipath and Skytrofa. The company ended the quarter with €539 million in cash and cash equivalents, demonstrating strong cash flow management and positioning itself well for future growth.

In summary, Ascendis Pharma’s earnings call highlighted a period of strong financial performance and strategic growth. While challenges such as insurance approval conversion rates and foreign currency impacts remain, the company’s positive operating profit and regulatory advancements provide a solid foundation for continued success. Investors and stakeholders can look forward to Ascendis Pharma’s sustained growth and market expansion in the coming quarters.