Following Ascendis Pharma’s ASND reporting of positive topline Phase III data for its PaTHway trial of TransCon PTH (TCP) in adults with hypoparathyroidism, the likelihood of success of its TCP has increased from 60% to 75%, according to BofA Securities.
The Ascendis Pharma Analyst: Tazeen Ahmad upgraded the rating for Ascendis Pharma from Neutral to Buy, while raising the price target from $148 to $161.
The Ascendis Pharma Thesis: The lead asset, TransCon GH (Skytrofa), addresses an under-met need for long-acting GH therapies, Ahmad said in the upgrade note.
“Mgmt reaffirmed timeline for US submission in 3Q/ EU submission in 4Q and we look for updates on efforts surrounding market sizing (we model 35% peak share in TCP),” he added.
“We also think TransCon PTH will be approved in US and EU based on phase 3 PaTHway data and note current share prices presents a favorable risk reward profile, giving limited credit to the combined opportunity of Skytrofa and TransCon PTH in growth hormone deficiency and hypoparathyroidism, respectively,” the analyst wrote.
ASND Price Action: Shares of Ascendis Pharma had risen by 5.03% to $107.80 at the time of publication Tuesday.
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