Ascendis Pharma stock rocketed Monday on promising test results for a growth treatment that could rival BioMarin Pharmaceutical's approved drug, Voxzogo.
Ascendis tested its drug, dubbed TransCon CNP, in children ages 2 to 11 with achondroplasia. In this genetic condition, an abnormal protein causes slow growth. Children who received TransCon CNP for a year grew an average 5.89 centimeters, compared to 4.41 centimeters for placebo recipients.
Ascendis Pharma's results look competitive with BioMarin's Voxzogo, Leerink Partners analyst Joseph Schwartz said in a report.
"Acknowledging the perils of cross-trial comparisons, it appears that TransCon CNP data are competitive vs. the one approved product," he said. "Moreover, considering TransCon CNP is a once-weekly injection vs. once-daily for Voxzogo, we see this becoming a meaningful product for Ascendis," he said.
Ascendis Pharma stock surged 17.1% to close at 139.57. Shares bounded over their 50-day and 200-day moving averages, according to MarketSurge. BioMarin stock tumbled 17.7% to 69.86.
Ascendis Pharma Eyes BioMarin's Market
Ascendis split its study into two groups: children age 2 to less than 5, and children ages 5 to 11.
In the former group, children treated with Ascendis Pharma's TransCon CNP grew an average 6.07 centimeters over the course of a year, compared to 5.06 centimeters in the placebo group.
Children ages 5 to 11 who received Ascendis' drug grew an average 2.29 centimeters vs. 0.52 centimeters for the placebo group. That 1.78 centimeter difference compares favorably to the 1.57 centimeter difference in the Voxzogo study of children age 5 and older, Schwartz said.
He sees a potential for $930 million in peak sales of TransCon CNP for Ascendis Pharma. In comparison, Voxzogo generated $470 million in sales last year.
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