Viridian Therapeutics: Promising Data and Market Position Justify Buy Rating

H.C. Wainwright analyst Douglas Tsao has maintained their bullish stance on VRDN stock, giving a Buy rating today.

Douglas Tsao has given his Buy rating due to a combination of factors surrounding the promising data and potential market position of Viridian Therapeutics. The long-term follow-up data from the THRIVE studies showed that 70% of participants who responded to veligrotug at week 15 maintained their response at week 52, which is a significant indicator of the drug’s durability. This is particularly compelling when compared to Tepezza, where only 53% of patients maintained their response over a longer period. The safety profile of veligrotug remained consistent, with most adverse events resolving by week 52, which adds to its attractiveness.
Furthermore, the anticipated FDA approval and favorable labeling are expected to enhance veligrotug’s competitive edge, especially with its shorter treatment course and lower risk of side effects such as hearing loss. The potential for veligrotug to capture a significant share of the TED market, currently dominated by Tepezza, is bolstered by the positive clinician feedback and the expected inclusion of efficacy data for chronic TED and diplopia improvement. Tsao’s valuation of Viridian, based on a risk-adjusted revenue estimate and a high probability of success for its lead assets, supports the Buy rating despite the inherent risks related to regulatory approval, competition, and financial sustainability.

Tsao covers the Healthcare sector, focusing on stocks such as Protagonist Therapeutics, Viridian Therapeutics, and Argenx Se. According to TipRanks, Tsao has an average return of 6.8% and a 36.71% success rate on recommended stocks.

In another report released today, Wedbush also maintained a Buy rating on the stock with a $41.00 price target.