Ascendis Pharma Faces Challenges With Skytrofa And Yorvipath Pricing: Analysts Weigh In

Author: Vandana Singh | September 04, 2024 05:02pm

Tuesday, Ascendis Pharma A/S (NASDAQ:ASND) reported second-quarter sales of $38.76 million (35.9 million euros), missing the consensus of $92.7 million, down from 47.4 million euros reported a year ago.

Cantor Fitzgerald writes that the Skytrofa update probably overshadowed another key update from the call: the U.S. pricing for Yorvipath, which came out at $285,000/patient/year, much higher than our expectation of $160-190K.

The analyst notes that due to the lower Skytrofa guidance, the company’s cash flow breakeven target has been pushed to 2024-2025 instead of 2024. Achieving breakeven this year is unlikely unless the company significantly reduces costs.

The analyst maintains the Overweight rating, with a price target lowered from $173 to $170.

The pricing challenges haven’t just affected Skytrofa; long-acting growth hormone products from Novo Nordisk A/S (NYSE:NVO) and Pfizer Inc (NYSE:PFE) also appeared impacted in the second quarter. However, the analyst writes competition isn’t the primary factor.

Stifel maintains a Buy rating, noting that management continues to see volume growth and expects GTN stabilization in the near term.

Although GH numbers have significantly decreased, Stifel’s core thesis remains focused on the potential of Yorvipath in hypoparathyroidism, which they believe represents a multi-billion euro market in the U.S., despite launch delays and a higher-than-expected U.S. price of $285K.

Additionally, Ascendis Pharma anticipates data from the ApproaCH trial of TransCon CNP in Achondroplasia in the coming weeks. Expectations for TransCon CNP to be competitive against BioMarin Pharmaceutical Inc’s (NASDAQ:BMRN) Voxzogo (vosoritide) remain low.

Price Action: ASND stock closed lower by 11.30% at $119.50 on Wednesday.

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Posted In: ASND BMRN NVO PFE