Investing.com - RBC Capital reiterated an Outperform rating and $42.00 price target on Viridian Therapeutic (NASDAQ:VRDN), which currently trades at $14.62 with a market capitalization of $1.47 billion. The stock has declined nearly 40% year-to-date, though InvestingPro analysis suggests the company remains undervalued at current levels.
The firm noted that cross-trial comparisons are challenging without full data sets. TEPEZZA-OBI results showed a proptosis response rate of 76.7% versus 54% for Viridian's elezanumab administered every four weeks and 63% for every eight weeks. On a placebo-adjusted basis, TEPEZZA-OBI achieved 57% compared to 36% for elezanumab every four weeks and 45% for every eight weeks.
TEPEZZA-OBI met statistical significance on the Clinical Activity Score endpoint of 0 or 1, while Viridian's elezanumab missed this endpoint partially due to high placebo response. Mean change from baseline in proptosis was -2.37mm placebo-adjusted for TEPEZZA-OBI versus -1.52mm for elezanumab every four weeks and -1.69mm for every eight weeks placebo-adjusted.
Viridian's elezanumab requires as few as four total subcutaneous injections over 24 weeks. TEPEZZA-OBI requires delivery via subcutaneous infusion pump every two weeks for 24 weeks, totaling 12 injections.
RBC Capital stated it expects the results to increase competition for thyroid eye disease treatment and anticipates a negative impact on Viridian's shares. According to InvestingPro Tips, the stock has taken a big hit over the last week and RSI suggests it's in oversold territory. The firm believes elezanumab has an approvable data set in active thyroid eye disease and sees a role for the therapy given greater convenience. Analysts maintain a Strong Buy consensus on the stock, with price targets ranging from $20 to $50.
In other recent news, Viridian Therapeutics has been the focus of multiple analyst updates following the release of trial data for its treatment in thyroid eye disease. The company reported that its REVEAL-1 trial met its primary endpoint, with the Q4W arm of elegrobart showing a 54% proptosis responder rate compared to 18% for placebo. Despite this achievement, several firms have adjusted their price targets for Viridian Therapeutics. H.C. Wainwright reduced its price target from $34 to $22, maintaining a Buy rating, citing the trial results. Similarly, Wolfe Research lowered its target to $29 from $37, also maintaining an Outperform rating, while Jefferies cut its target from $45 to $29, retaining a Buy rating. Stifel reiterated a Buy rating with a $48 price target, noting the statistically significant results of the trial. Truist Securities also maintained a Buy rating with a $40 price target, emphasizing the trial's successful primary endpoint results. These developments reflect the mixed analyst sentiment and adjustments following the trial outcomes.