Tazeen Ahmad, an analyst from Bank of America Securities, reiterated the Buy rating on Ascendis Pharma. The associated price target was raised to $230.00.
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Tazeen Ahmad has given his Buy rating due to a combination of factors including the recent approval of Yorvipath in Japan, which is expected to significantly boost Ascendis Pharma’s revenue through its partnership with Teijin Limited. This approval allows Ascendis to receive sales royalties up to the mid-20% range, enhancing its financial prospects. The company has also secured an upfront payment and potential milestone payments, indicating a promising commercial opportunity in Japan.
Additionally, the anticipated US regulatory decision on TransCon CNP for achondroplasia by the end of November could further strengthen Ascendis Pharma’s market position. The company’s proprietary TransCon technology is seen as a differentiator against competitors, potentially leading to substantial sales growth. The valuation model reflects these opportunities, with a peak sales estimate of $3.2 billion for Yorvipath globally, contributing to a positive outlook and a price objective of $230.
In another report released on August 25, Morgan Stanley also maintained a Buy rating on the stock with a $250.00 price target.