On Friday, RBC Capital Markets adjusted its outlook on Agios Pharmaceuticals, increasing the price target on the company's shares from $42.00 to $44.00. The firm maintained its Outperform rating for the biopharmaceutical company, which is listed on NASDAQ under the ticker NASDAQ:AGIO.
The revision follows Agios Pharma (NASDAQ:AGIO)'s first-quarter update, which included a more precise timeline for the ENERGIZE-T/TD study results, now expected in the second quarter of 2024. This study, if successful, could bolster Agios Pharma's application for a broader thalassemia treatment approval by the end of 2024, based on previously announced ENERGIZE/NTD outcomes.
The analyst from RBC Capital cited several factors contributing to Agios Pharma's promising setup. These include anticipated catalysts from thalassemia treatments throughout the year and a sickle cell disease (SCD) readout anticipated in 2025. Additionally, there is potential for revenue growth from mitapivat, the company's investigational drug, and a strong financial position with approximately $714 million in cash at the end of the first quarter of 2024.
Moreover, the company could benefit from a $200 million milestone payment related to the Prescription Drug User Fee Act (PDUFA) decision for vorasidenib, expected in August. Vorasidenib is being developed in collaboration with Servier and is under review for approval.
RBC Capital's updated model reflects these developments and the firm's confidence in Agios Pharma's long-term prospects, particularly regarding the revenue expansion opportunities for mitapivat. The analyst reasserted the Outperform rating, indicating a positive stance on the stock's potential performance.
InvestingPro Insights
Agios Pharmaceuticals (NASDAQ:AGIO) has been the subject of recent analyst attention, and the InvestingPro platform offers additional context that may be of interest to investors. The company's stock has experienced a significant return over the last week, with a price total return of 9.81%.
Over a longer term, AGIO shows a strong return over the last month at 21.46%, and over the last three months, the return is even more impressive at 49.76%. This performance is particularly notable as AGIO is trading near its 52-week high, with the price at 97.41% of this peak.
Despite these positive returns, there are areas of concern that investors should be aware of. AGIO is not profitable over the last twelve months, and analysts do not anticipate the company will be profitable this year. Moreover, the company is quickly burning through cash, which is a critical factor to consider given its research and development-intensive operations. Investors should note that AGIO holds more cash than debt on its balance sheet, which may provide some financial flexibility in the near term.
For investors seeking a deeper dive into Agios Pharmaceuticals, there are 13 additional InvestingPro Tips available on the platform, which can be accessed at https://www.investing.com/pro/AGIO. These tips provide a comprehensive analysis of AGIO's financial health and market performance. To enjoy these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.