Viridian 2025 Q1 Earnings Misses Targets as Net Income Widens Dramatically

Viridian (VRDN) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company saw a substantial increase in net loss, widening by 79% compared to the same quarter last year. Viridian's guidance remained consistent with previous expectations, projecting a strong cash position to support operations into 2027, while continuing to advance its pipeline products towards commercialization. The anticipated submission of the Biologics License Application (BLA) for veligrotug and ongoing clinical trials for VRDN-003 were reaffirmed, maintaining confidence in the company’s future prospects despite current financial challenges.

Revenue
Viridian's revenue for fiscal 2025 Q1 remained unchanged at $72,000 compared to the same quarter in the previous year. The entirety of this revenue is attributed to collaboration efforts with related parties, which continues to be the sole contributing segment to the company's financial inflow.

Earnings/Net Income
Viridian experienced a deepening of losses, reporting $0.87 per share in Q1 2025, a significant increase from the $0.59 per share loss in Q1 2024. The net loss widened to $86.91 million, marking a 79% increase from the previous year's $48.54 million loss. The ongoing trend of losses highlights the company's financial struggles, compounded by the unfavorable EPS performance.

Post Earnings Price Action Review
Viridian's strategy of purchasing shares following a quarter-over-quarter revenue drop and holding for 30 days has yielded positive returns over the past five years, with an impressive overall return of 116.02%. This surpasses the benchmark return of 83.12%, indicating a 32.90% outperformance. Despite experiencing a maximum drawdown of -20.82%, the strategy maintained a Sharpe ratio of 0.75, demonstrating a moderate risk-to-return balance. The compound annual growth rate (CAGR) stood at 16.86%, reflecting steady growth. However, the volatility associated with the strategy, measured at 22.53%, suggests a high-risk approach. Nonetheless, the strategy's effectiveness in capturing subsequent gains has been evident, providing a viable opportunity for investors to benefit from revenue drop scenarios.

CEO Commentary
Viridian Therapeutics' President and CEO, Steve Mahoney, emphasized the company's ongoing execution across its portfolio, highlighting the anticipated submission of the BLA for veligrotug in the second half of 2025 and the progress of the VRDN-003 clinical trials, with topline data expected in the first half of 2026. He expressed excitement about transitioning to a commercial organization, particularly with the expected U.S. launch of veligrotug in 2026. Mahoney noted the differentiated clinical profile of veligrotug, positioning it as a potential IV treatment-of-choice for thyroid eye disease, and conveyed optimism about expanding treatment options for patients with autoimmune diseases.

Guidance
Viridian Therapeutics anticipates submitting the BLA for veligrotug in the second half of 2025, with an EMA MAA submission expected in the first half of 2026. The company projects topline data from the phase 3 clinical trials for VRDN-003 in the first half of 2026 and plans to launch the product, pending approval. For VRDN-006, proof-of-concept data is expected in Q3 2025, while the IND submission for VRDN-008 is on track for year-end 2025. Overall, Viridian expects its strong cash position of $636.6 million to support operations into the second half of 2027.

Additional News
In recent corporate developments, Viridian Therapeutics announced the appointment of Jeff Ajer to its Board of Directors. Ajer, with over 25 years of experience in commercialization for rare diseases, previously served as Executive Vice President and Chief Commercial Officer at BioMarin Pharmaceutical, Inc. This strategic addition aims to bolster Viridian's commercial planning capabilities as the company transitions towards a commercial organization. Furthermore, Viridian disclosed the issuance of inducement grants under Nasdaq Listing Rule 5635(c)(4), aimed at attracting new talent to the firm. These grants include stock options for nine new employees and a significant grant to the newly appointed Chief Medical Officer, Radhika Tripuraneni, marking key steps in strengthening Viridian's leadership team.