Analyst Joseph Thome of TD Cowen maintained a Hold rating on PTC Therapeutics (PTCT – Research Report), with a price target of $30.00.
Joseph Thome has given his Hold rating due to a combination of factors impacting PTC Therapeutics’ financial outlook and regulatory challenges. The company’s FY23 Duchenne muscular dystrophy (DMD) revenues aligned with expectations, but forecasts indicate a significant downturn in FY24 revenue, influenced by the Committee for Medicinal Products for Human Use (CHMP) reaffirming a negative stance on Translarna. This is compounded by the impending generic competition for Emflaza post-market exclusivity loss, and management’s adjusted revenue guidance reflects these headwinds. Despite potential for continued authorization in Brazil and the UK, the reduced European Union sales are expected to affect overall financial performance.
Additionally, Thome’s outlook considers the prospective New Drug Application (NDA) submission for vatiquinone in treating Friedreich’s ataxia (FA), which could occur in late 2024. The company’s engagement with the FDA suggests a viable pathway to approval using data from controlled and ongoing studies. Positive data on the upright stability scale, which is a predictive factor for disease progression, supports the drug’s potential. However, the timing and success of this regulatory process are uncertain and add risk to the investment profile. Therefore, Thome maintains a Hold rating, acknowledging both the risks and opportunities that lie ahead for PTC Therapeutics.
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PTC Therapeutics (PTCT) Company Description:
PTC Therapeutics, Inc. is a biopharmaceutical company, which engages in the discovery and commercialization of clinically-differentiated medicines. It focuses on the development of new treatments for multiple therapeutic areas, including rare diseases and oncology. The company was founded by Allan Steven Jacobson and Stuart W. Peltz on March 31, 1998 and is headquartered in South Plainfield, NJ.
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