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Stifel raises Mirum Pharmaceuticals target to $70 on growth outlook

Published 13/11/2024, 05:20 am
MIRM
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On Tuesday, Stifel, a financial services firm, increased its price target for Mirum Pharmaceuticals (NASDAQ:MIRM) shares from $66.00 to $70.00. The firm maintained a Buy rating on the stock, reflecting confidence in the company's commercial progress and future prospects.

Mirum Pharmaceuticals has shown a positive trajectory with its product revenue reaching $90.3 million, leading to an upward revision of its full-year 2024 guidance to $330 million - $335 million, compared to the previous forecast of $310 million - $320 million. The company's growth is largely attributed to the performance of its products Livmarli, Chenodal, and Cholbam.

The analyst from Stifel highlighted the potential for Livmarli's continued growth to serve as a solid foundation for Mirum's riskier clinical ventures. These include volixibat and the more recent MRM-3379, which could open new avenues for growth. There is also anticipation for the near-term FDA decision on Chenodal for the treatment of cerebrotendinous xanthomatosis (CTX), with a PDUFA date set for December 28. Approval could provide another commercial boost for the company.

Investors are also advised to watch for significant catalysts starting in 2025, which include milestones related to volixibat. Additionally, the EXPAND trial is actively enrolling patients, and a Phase 2 trial initiation for MRM-3379, aimed at treating fragile X syndrome (FXS), is expected in 2025. These developments suggest that Mirum Pharmaceuticals could increasingly attract growth-oriented investors.

Stifel's optimism is further supported by Mirum's robust balance sheet, which boasts approximately $294 million in strength. The firm's revised price target of $70 reflects their confidence in Mirum's ability to capitalize on these various growth opportunities.

In other recent news, Mirum Pharmaceuticals has been making significant strides with the FDA granting Breakthrough Therapy Designation to its drug candidate, volixibat, which is currently under development for treating cholestatic pruritus in primary biliary cholangitis patients. This endorsement came following positive interim results from the Phase 2b VANTAGE study. The FDA's decision was influenced by the drug's potential to substantially improve on at least one clinically significant endpoint over existing therapies.

Mirum Pharmaceuticals also received approval for an expanded indication for its drug, LIVMARLI, allowing it to treat cholestatic pruritus in patients with progressive familial intrahepatic cholestasis aged 12 months and older. H.C. Wainwright reaffirmed a Buy rating on Mirum, a move that followed the FDA's recent Breakthrough Therapy Designation for volixibat.

The company demonstrated strong financial performance with total net product revenue reaching $69 million in the first quarter of 2024, with LIVMARLI contributing $43 million. Analyst firms including JMP Securities, Stifel, and H.C. Wainwright have projected a revenue between $310 million and $320 million for 2024.

In other developments, Mirum received European Union approval for LIVMARLI for PFIC patients aged three months and older, and has submitted a supplemental New Drug Application for a higher concentration formulation of LIVMARLI.

InvestingPro Insights

Mirum Pharmaceuticals' recent performance aligns with several key insights from InvestingPro. The company's strong revenue growth is reflected in the impressive 128.34% increase over the last twelve months, with quarterly revenue growth at 107.68% as of Q2 2024. This robust growth supports Stifel's optimistic outlook and increased price target.

InvestingPro Tips highlight that MIRM is trading near its 52-week high and has seen a large price uptick over the last six months, which corresponds with the positive momentum mentioned in the article. The company's strong return over the last five years further underscores its potential for growth-oriented investors.

However, it's important to note that despite the revenue growth, MIRM is not currently profitable, as indicated by another InvestingPro Tip. This aligns with the company's focus on future growth opportunities and clinical ventures mentioned in the article.

For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into Mirum Pharmaceuticals' financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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