B.Riley maintains Viridian stock Neutral, $19 target

Published 05/21/2025, 12:25 PM
B.Riley maintains Viridian stock Neutral, $19 target

On Wednesday, B.Riley reiterated its Neutral stance on Viridian Therapeutics (NASDAQ:VRDN) with a steady price target of $19.00, sitting at the lower end of the analyst range that extends up to $61.00. The decision follows Viridian’s recent update on its THRIVE study, which indicated that 70% of patients with proptosis who showed improvement at week 15 continued to maintain their response by week 52, based on a subset of 30 participants. This data suggests a promising sign of the treatment’s durability. According to InvestingPro data, the stock has shown resilience with an 11.6% gain over the past week, though it remains 29.6% lower over the past six months.

The study’s findings present a positive development for Viridian, as the sustained response rate could be a significant factor for patients suffering from proptosis, a condition characterized by the bulging of the eye. The company’s focus is on the potential of its treatment, veli, to compete with existing options like Tepezza, which currently holds a significant market share. While the company maintains a strong liquidity position with a current ratio of 19.49 and more cash than debt on its balance sheet, InvestingPro analysis reveals the company is rapidly burning through its cash reserves.

Despite the optimistic data, B.Riley advises caution, noting that the results should be viewed as preliminary. The firm points out that there are several critical factors that need to be further evaluated before one can confidently assess veli’s market potential. These factors include the full scope of the treatment’s long-term efficacy and safety, which are crucial for gaining a larger market share. This cautious stance aligns with broader financial indicators, as InvestingPro reports that six analysts have recently revised their earnings expectations downward, with the company expected to remain unprofitable this year.

Viridian’s THRIVE study will continue to be monitored closely by investors and analysts alike, as additional data could provide a clearer picture of veli’s competitive edge in the treatment of proptosis. The continuation of the study will be essential in determining the drug’s position in the market and its ability to challenge established treatments.

The company’s stock performance will likely be influenced by future study results and regulatory developments. As it stands, B.Riley’s current assessment reflects a cautious but watchful approach to Viridian’s prospects in the competitive landscape of proptosis treatments.

In other recent news, Viridian Therapeutics reported a narrower-than-expected first-quarter loss, with a $0.87 per share loss compared to analyst estimates of $0.98. The company’s revenue for the quarter was $70,000, surpassing expectations of $52,090. Viridian’s lead candidate, veligrotug, continues to advance with plans for a Biologics License Application submission in the second half of 2025 and a potential U.S. launch in 2026. The drug has received Breakthrough Therapy Designation from the FDA, which could expedite its approval process. In the THRIVE and THRIVE-2 phase 3 trials, veligrotug met all primary and secondary endpoints, demonstrating significant improvements in thyroid eye disease symptoms. Stifel analysts maintained their Buy rating on Viridian, highlighting the company’s progress towards commercialization and setting a price target of $41.00. Viridian is also advancing VRDN-003, with phase 3 trial results expected in the first half of 2026. The company ended the quarter with $636.6 million in cash and investments, which it anticipates will support operations until the second half of 2027. Additionally, Viridian announced the appointment of Jeff Ajer to its Board of Directors, preparing for a potential commercial launch.

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