Wedbush analyst Yun Zhong maintained a Buy rating on Ascendis Pharma today and set a price target of $212.00.
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Yun Zhong has given his Buy rating due to a combination of factors, primarily centered around the recent FDA approval of Skytrofa for adult patients with growth hormone deficiency (GHD). This approval was anticipated due to the drug’s proven efficacy in clinical trials, where it showed comparable results to daily growth hormone treatments in reducing trunk fat and increasing lean mass. The expected launch of Skytrofa in the fourth quarter of 2025, or possibly sooner, is projected to capture a significant market share, with a conservative estimate of €89 million in revenue by 2035.
Furthermore, Ascendis Pharma’s plans to initiate a basket study for additional skeletal indications, such as Turner syndrome and idiopathic short stature, present a substantial commercial opportunity. The company’s existing infrastructure from the Yorvipath launch in hypoparathyroidism is expected to support Skytrofa’s market entry. Additionally, the timely FDA approval process, despite recent regulatory changes, indicates a positive outlook for the biotech sector, reinforcing the Buy recommendation.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $194.00 price target.