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BTIG has initiated coverage of eye drug developer Viridian Therapeutics (NASDAQ:VRDN) with a buy rating, citing its drug candidate for the treatment of thyroid eye disease, or TED.
The investment bank said in a note that it sees the product, VRDN-001, as a strong potential competitor to Horizon Therapeutics’ (NASDAQ:HZNP) Tepezza, the current market leader. It noted that Tepezza generated $1.97B in net revenue for fiscal 2022, with peak sales estimated at more than $4B.
BTIG added that it sees the the stock’s current “underperformance” as an “attractive entry point” ahead of the expected release of Phase 2 data on VRDN-001 for chronic TED in late June/early July. The bank has a price target of $46 for the stock.
Both VRDN-001 and Tepezza belong to a group of drugs known as anti-IGF-1R therapies. BTIG said it believes that there is opportunity for VRDN-001 to improve upon Tepezza’s efficacy, durability, safety and dosing.
“We think splitting the TED market with current standard of care represents a compelling upside potential for VRDN shares,” BTIG analysts wrote, adding that product differentiation could “ultimately leave VRDN with majority market share in this blockbuster market opportunity.”
More on Viridian and Horizon:
Viridian an outperform at RBC on thyroid eye disease candidate
Viridian initiated at overweight at Wells Fargo on thyroid eye disease asset potential
Viridian Therapeutics Has Promise
Amgen sees potential for Horizon to close by mid-December under court schedule
FTC files suit to block Amgen’s $28B purchase of Horizon Therapeutics
