Why Vera Therapeutics Stock Rocked the Market on Tuesday
A competitor recently received FDA approval, but the drug is said to be expensive.
An extremely optimistic new research note from one analyst was the spark that ignited the stock market. Vera Therapeutics (Vera +12.97%) On Tuesday. This overwhelmingly positive investor response sent shares of the clinical-stage biotech up nearly 13% on the day.
Price advantage?
The analyst in question was Ryan Deschner. raymond jamesWe reiterated our strong Buy recommendation on Vera stock. He also maintained his $73 per share target for the healthcare company.
Image source: Getty Images.
Deschner’s update centered around its leading pipeline drug, atacicept, according to the report. This is a treatment being developed to treat the kidney disorder IgA nephropathy (IgAN), also known as Buerger’s disease.
The analyst noted a potential competitor recently approved by the U.S. Food and Drug Administration (FDA). Otsuka Pharmaceutical‘s Voyxact is priced by its developers at $30,000 per treatment every four weeks. That’s about twice what Deschner believes atacicept will cost.
today’s change
(12.97%)$4.28
current price
$37.28
Key data points
market capitalization
2 billion dollars
work range
$33.05 – $39.73
52 week range
$18.53 -$50.62
volume
181K
average volume
1.5 million
gross profit
0.00%
dividend yield
Not applicable
Get a competitive edge right out of the gate
If Deschner’s pricing assumptions are accurate, or somewhat in the ballpark, Vera will have a clear advantage if the treatment performs well in clinical trials and is ultimately approved by regulators.
As always in the world of biotechnology, the “ifs” matter. However, the development of atacicept has generally progressed smoothly so far, so we believe there is at least a good chance that it will be available in pharmacies.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
