Spruce Biosciences: TA-ERT’s Promising Long-Term Data and Priority Review Voucher Upside Underpin Reiterated Buy and $220 Target

Spruce Biosciences, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on the stock and has a $220.00 price target.

Ram Selvaraju has given his Buy rating due to a combination of factors related to both clinical progress and financing optionality. He highlights that long-term data for tralesinidase alfa (TA-ERT) in Sanfilippo Syndrome Type B show sustained biochemical control, with normalization of CSF heparan sulfate markers that are considered reasonably predictive of clinical benefit. In addition, patients on TA-ERT maintained cognitive performance, brain volume, and organ size over several years, in stark contrast to the deterioration observed in untreated natural history cohorts, while the safety profile remained consistent over roughly 6,000 administered doses. New analyses of adaptive behavior further support that communication and motor skills are preserved rather than declining, reinforcing the therapeutic promise and potential approvability of TA-ERT.

Selvaraju also emphasizes the restored visibility on non-dilutive funding through the U.S. Priority Review Voucher (PRV) program, which has been extended for rare pediatric diseases through 2029. Because MPS IIIB qualifies as an ultra-rare pediatric condition, Spruce could be eligible for a PRV upon approval of TA-ERT, an asset that recent market transactions suggest could be sold for roughly $150 million or more. He views the program’s reauthorization as a meaningful reduction in financing risk, potentially enabling Spruce to fund operations and strategic initiatives without substantial equity dilution. Coupled with a plausible regulatory timeline that could see TA-ERT approved by late 2026, these factors underpin his conviction in Spruce’s value creation potential and support his reiterated Buy rating and $220 twelve-month price target.

Selvaraju covers the Healthcare sector, focusing on stocks such as Vanda, Coya Therapeutics, Inc., and Emergent Biosolutions. According to TipRanks, Selvaraju has an average return of 25.8% and a 56.43% success rate on recommended stocks.