Ascendis Pharma Maintains Buy Rating with Skytrofa Approval and Market Potential

Ascendis Pharma receives a Buy rating from Wedbush analyst Yun Zhong due to the recent FDA approval of Skytrofa for adult patients with growth hormone deficiency. The drug's efficacy in clinical trials and expected launch in Q4 2025 are projected to capture a significant market share, with a conservative estimate of €89 million in revenue by 2035. The company's plans to initiate a basket study for additional skeletal indications and timely FDA approval process reinforce the Buy recommendation.

Ascendis Pharma (Nasdaq: ASND) has received a Buy rating from Wedbush analyst Yun Zhong, following the recent FDA approval of Skytrofa for adult patients with growth hormone deficiency (GHD). The approval, which was based on the foresiGHt Phase 3 trial, demonstrates the drug's efficacy and safety compared to placebo and daily somatropin [2]. Yun Zhong has set a price target of $212.00 for the stock, citing several factors that contribute to the positive outlook [1].

The primary driver behind the Buy rating is the FDA approval of Skytrofa, which is administered once-weekly, offering a less burdensome alternative to traditional daily somatropin injections. The drug's proven efficacy in clinical trials, where it showed comparable results to daily growth hormone treatments in reducing trunk fat and increasing lean mass, further supports the positive market potential [1]. The expected launch of Skytrofa in the fourth quarter of 2025, or possibly sooner, is projected to capture a significant market share, with a conservative estimate of €89 million in revenue by 2035 [1].

Additionally, Ascendis Pharma's plans to initiate a basket study for additional skeletal indications, such as Turner syndrome and idiopathic short stature, present a substantial commercial opportunity. The company's existing infrastructure from the Yorvipath launch in hypoparathyroidism is expected to support Skytrofa's market entry [1]. The timely FDA approval process, despite recent regulatory changes, indicates a positive outlook for the biotech sector, reinforcing the Buy recommendation [1].

TD Cowen also maintained a Buy rating on the stock with a $194.00 price target, further validating the positive market sentiment surrounding Ascendis Pharma and Skytrofa [1]. The FDA approval of Skytrofa for adult GHD represents a significant expansion of Ascendis' endocrinology portfolio, addressing a critical market need in adult GHD treatment [2]. This approval builds upon the drug's initial 2021 authorization for pediatric GHD, creating a continuous treatment pathway across age groups [2].

In summary, the recent FDA approval of Skytrofa for adult GHD, combined with Ascendis Pharma's strategic plans and positive market potential, has led to a Buy rating from analysts. Investors should closely monitor Ascendis Pharma's progress and the upcoming market launch of Skytrofa.

References:
[1] https://www.tipranks.com/news/ratings/buy-rating-for-ascendis-pharma-driven-by-skytrofas-fda-approval-and-market-potential-ratings
[2] https://www.stocktitan.net/news/ASND/fda-approves-skytrofa-lonapegsomatropin-tcgd-for-the-once-weekly-8em93mr4g4no.html