Analyst Matthew Caufield from H.C. Wainwright reiterated a Buy rating on Akebia Therapeutics and decreased the price target to $6.00 from $8.00.
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Matthew Caufield has given his Buy rating due to a combination of factors surrounding Akebia Therapeutics’ strategic decisions and market opportunities. The company has decided to halt the Phase 3 VALOR trial for CKD non-dialysis patients, a move that, while disappointing, allows them to focus on the more immediate commercial potential in the CKD dialysis market. This decision was influenced by regulatory challenges, including the need for a larger patient pool and more time and resources, which could detract from their current market efforts.
Despite the setback in the non-dialysis market, Akebia’s oral product, VAFSEO, has recently launched for CKD anemia patients on dialysis, presenting a significant opportunity. The focus is now on establishing VAFSEO as the standard-of-care in this billion-dollar market. The company anticipates further supportive data from upcoming conferences, which could bolster the drug’s adoption and underline its importance in the dialysis sector. This strategic shift and the untapped potential in the dialysis market underpin Caufield’s Buy rating.