Viridian Therapeutics: Hold Rating and Awaited 2026 Developments

Viridian Therapeutics maintains a Hold rating from Wells Fargo analyst Derek Archila, citing a stable near-term outlook and awaited 2026 developments. The company is expected to remain stable in the near term as it awaits significant developments in 2026, particularly concerning its VRDN-003 program. Despite a solid cash position and the expected launch of veligrotug in 2026, the lack of immediate catalysts in 2025 has contributed to the stock's underperformance.

Viridian Therapeutics (NASDAQ: VRDN) reported its second quarter financial results for the period ended June 30, 2023. The company's earnings per share (EPS) for the quarter were $-1.00, which matched the analyst estimate. Revenue for the quarter came in at $75K, exceeding the consensus estimate of $50.92K [1].

The stock price closed at $17.44, up 40.76% in the last three months and up 13.25% in the last 12 months. The company's stock has seen two positive EPS revisions and one negative EPS revision in the last 90 days, according to InvestingPro. The company's financial health score was rated as "fair performance" [1].

Viridian Therapeutics announced significant developments in its thyroid eye disease (TED) program. The company reported positive topline data from a proof-of-concept study of VRDN-001 in patients with chronic TED. The THRIVE Phase 3 trial in patients with active TED was amended to reflect Viridian's confidence in the 5-infusion treatment regimen. The THRIVE-2 Phase 3 trial in patients with chronic TED is expected to start in the third quarter of 2023, with topline results expected by year-end 2024 [2].

The company's cash position stood at $334.3 million as of June 30, 2023, down from $373.9 million as of March 31, 2023. Research and development expenses for the second quarter of 2023 were $40.1 million, up from $21.7 million for the same period last year. General and administrative expenses were $19.3 million, up from $8.1 million for the same period last year. The company's net loss for the second quarter of 2023 was $55.1 million, compared to $29.5 million for the same period last year [2].

Wells Fargo analyst Derek Archila maintains a Hold rating on Viridian Therapeutics, citing a stable near-term outlook and awaited 2026 developments. The company is expected to remain stable in the near term as it awaits significant developments in 2026, particularly concerning its VRDN-003 program. Despite a solid cash position and the expected launch of veligrotug in 2026, the lack of immediate catalysts in 2025 has contributed to the stock's underperformance [1].

References:
[1] https://ca.investing.com/news/earnings/viridian-therapeutics-earnings-matched-revenue-topped-estimates-4139422
[2] https://www.businesswire.com/news/home/20230808571508/en/Viridian-Therapeutics-Reports-Second-Quarter-2023-Financial-Results-and-Provides-Corporate-Update