H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Idorsia Ltd today and set a price target of CHF6.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors that strengthen Idorsia Ltd’s financial position and growth prospects. The recent successful equity offering, which raised CHF65.6 million, has significantly bolstered the company’s balance sheet. This capital influx is expected to support the acceleration of Idorsia’s commercial activities, particularly for its key products, QUVIVIQ and TRYVIO, and extend the company’s cash runway to achieve profitability by 2027.
Additionally, Selvaraju highlights the strategic initiatives underway, such as the transition to a broader retail pharmacy distribution model for TRYVIO and the potential U.S. descheduling of QUVIVIQ’s drug class, which could drive revenue growth. The valuation of Idorsia is supported by a discounted cash flow analysis, with key value drivers being daridorexant, aprocitentan, and lucerastat. Despite risks like potential trial failures and approval delays, the overall outlook remains positive, justifying the Buy rating.