Goldman Sachs upped its price target on Ionis to $75 and maintained a ‘Neutral’ rating on the shares.
- The U.S. Food and Drug Administration (FDA) approved Tryngolza on Wednesday as the first and only treatment indicated to reduce both triglycerides and the risk of acute pancreatitis in adults with severe hypertriglyceridemia.
- Ionis plans to launch Tryngolza in the United States for sHTG in July.
- Rival Arrowhead Pharmaceuticals is also developing its drug Redemplo for the indication.
Shares of Ionis Pharmaceuticals (IONS) jumped 4% after-hours on Wednesday after Goldman Sachs raised its price target to $75, while retail traders applauded U.S. Food and Drug Administration (FDA) approval for its drug in severe hypertriglyceridemia ahead of rival firm Arrowhead Pharmaceuticals.
Goldman Sachs upped its price target on Ionis from $74 and maintained a ‘Neutral’ rating, citing the FDA’s approval of Tryngolza as an adjunct to diet to reduce triglycerides and the risk of acute pancreatitis in adults with severe hypertriglyceridemia. The firm’s new price target, however, implies a downside of about 2% from the stock’s last closing price.
FDA Grants Broad Label For Tryngolza In sHTG
The FDA approved Tryngolza on Wednesday as the first and only treatment indicated to reduce both triglycerides and the risk of acute pancreatitis in adults with severe hypertriglyceridemia based on data from two trials. Data from the late-stage CORE and CORE2 clinical studies showed placebo-adjusted triglyceride reductions of up to 72% at six months that were sustained through 12 months. The drug also reduced acute pancreatitis events by up to 91%, with 86% of patients achieving triglyceride levels below 500 mg/dL.
The approval expands the drug’s label beyond its prior December 2024 approval for familial chylomicronemia syndrome.
Commercial Launch Planned For July
Ionis plans to launch Tryngolza in the United States for sHTG in July. Tryngolza is administered as a once-monthly subcutaneous injection at either 50 mg or 80 mg using an autoinjector. The most common side effects are injection site reactions and liver enzyme elevations.
“This approval marks a historic advance for people who have long struggled to control their dangerously high triglycerides,” said CEO Brett Monia. Severe hypertriglyceridemia affects more than three million Americans, according to the company’s estimates.
How Did IONS Retail Traders React?
On Stocktwits, retail sentiment around IONS stayed within the ‘bullish’ territory over the past 24 hours, while message volume was at ‘normal’ levels.
According to data from Koyfin, 21 of the 24 analysts covering IONS rate it ‘Buy’ or higher, while three rate it ‘Hold.’ The stock has a 12-month average price target of $104.91, representing a potential upside of about 37% from Wednesday’s close.
IONS stock has fallen by about 4% year-to-date.
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