Analyst Alec Stranahan of Bank of America Securities reiterated a Buy rating on Springworks Therapeutics (SWTX – Research Report), with a price target of $50.00.
Alec Stranahan has given a Buy rating to Springworks Therapeutics, citing the recent FDA approval of Ogsiveo, the first and only desmoid tumor treatment for adults, as a significant advancement. The company’s stock has already seen a positive reaction, and with no other approved systemic therapies available, Ogsiveo is poised for straightforward commercialization. The favorable FDA label, absence of a black box warning, and the potential for the drug to become the standard of care further underpin this recommendation. Stranahan has increased the price objective to $50, reflecting the adjusted pricing post-approval and the anticipated commercial success.
In addition, Springworks Therapeutics is not solely reliant on Ogsiveo, with another drug, mirdametinib, expected to be approved by early 2025. This diversification strengthens the company’s market position, with the potential for long-term chronic use of Ogsiveo and a significant total addressable market. Despite discussions about market size, the high price of the drug and its chronic nature are expected to offset any potential lower market penetration. Stranahan views the company’s pipeline and the forthcoming launch of mirdametinib as supportive factors for the stock over the next year, making it a challenging proposition for investors to bet against the company’s launch success at this stage.
Stranahan covers the Healthcare sector, focusing on stocks such as TG Therapeutics, Day One Biopharmaceuticals, and Novavax. According to TipRanks, Stranahan has an average return of 6.3% and a 54.55% success rate on recommended stocks.
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Springworks Therapeutics (SWTX) Company Description:
Springworks Therapeutics, Inc. operates as a clinical-stage biopharmaceutical company. It identifies pathways for drug development for patients with severe rare diseases and cancer. The firm’s products include Nirogacestat, Mirdametinib and BGB-3245. The company was founded in August 2017 and is headquartered in Stamford, CT.
Read More on SWTX:
- SpringWorks Stock (NASDAQ:SWTX) Rallies on FDA’s Rare Tumor Drug Approval
- SpringWorks Therapeutics Announces FDA Approval of OGSIVEO™ (nirogacestat) as the First and Only Treatment for Adults with Desmoid Tumors
- SpringWorks Therapeutics announces FDA approval of OGSIVEO
- SpringWorks Therapeutics price target raised to $58 from $55 at JPMorgan
- SpringWorks price target lowered to $52 from $58 at H.C. Wainwright
