Following Ascendis Pharma’s (NASDAQ: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.
