Ascendis Pharma’s Promising Outlook: FDA Priority Review and Market Performance Drive Buy Rating

Leerink Partners analyst Joseph Schwartz has maintained their bullish stance on ASND stock, giving a Buy rating on June 2.

Joseph Schwartz has given his Buy rating due to a combination of factors related to Ascendis Pharma’s recent developments and market performance. The FDA’s acceptance of Ascendis’ New Drug Application for TransCon CNP under priority review is a significant milestone, dispelling concerns about the data duration required for approval. This acceptance, without the need for an Advisory Committee meeting, suggests confidence in the product’s potential, which is a positive indicator for the company’s future prospects.
Furthermore, Ascendis Pharma’s stock has outperformed year-to-date, driven by the successful launch of Yorvipath for hypoparathyroidism. The promising results from the pivotal ApproaCH study and the differentiated profile of TransCon CNP compared to existing treatments like BioMarin’s Voxzogo, which is expected to achieve substantial sales, add to the optimism. With a high probability of success and potential peak sales in the US and EU, Schwartz believes the current stock levels do not fully reflect the value of the CNP program, reinforcing his positive outlook on Ascendis Pharma.

In another report released on June 2, Bank of America Securities also reiterated a Buy rating on the stock with a $201.00 price target.

ASND’s price has also changed moderately for the past six months – from $133.510 to $175.690, which is a 31.59% increase.