Ascendis Pharma: Advancing Achondroplasia Combo Franchise and De-Risked Regulatory Path Support Buy Rating and $242 Target

Analyst Tazeen Ahmad of Bank of America Securities maintained a Buy rating on Ascendis Pharma, retaining the price target of $242.00.

Tazeen Ahmad has given his Buy rating due to a combination of factors linked to Ascendis Pharma’s advancing achondroplasia franchise and solid clinical execution. The latest 52-week Phase 2 COACH data for the combination of TransCon CNP and TransCon hGH show a sustained and clinically meaningful improvement in annualized growth velocity that exceeds key expert expectations, and meaningfully outperforms TransCon CNP monotherapy. In addition, management continues to progress toward a pivotal Phase 3 design comparing the combo to TransCon CNP alone, with growth velocity as the key efficacy measure, which supports a clear regulatory and development path. Near term, the upcoming PDUFA decision for TransCon CNP monotherapy in achondroplasia, which the analyst views as having a high probability of approval, provides a tangible catalyst that can validate the platform and support the current valuation and price objective.

At the same time, non-height outcomes such as body proportionality and arm span are trending positively at 52 weeks, reinforcing the potential for quality-of-life benefits that may strengthen the product’s real-world value proposition. Safety and tolerability for the combination remain in line with prior monotherapy and earlier combo data, with no emerging bone-health concerns, supporting confidence in longer-term use. The company is also developing a single-injection coformulation of the combo, which, while still without a disclosed timeline, could enhance patient adherence and protect market share against off-label regimens, while opening opportunities in additional growth-related indications. Collectively, these efficacy, safety, regulatory, and lifecycle-extension elements underpin Ahmad’s conviction in the long-term growth potential of Ascendis Pharma and support maintaining a Buy rating with a $242 price objective.

In another report released on January 7, TD Cowen also maintained a Buy rating on the stock with a $325.00 price target.