On Thursday, Guggenheim analysts increased their price target on Vera Therapeutics (NASDAQ:VERA) shares to $61 from $59 while maintaining a Buy rating. Currently trading at $27.77, the company commands a market capitalization of $1.76 billion. According to InvestingPro data, analyst targets range from $38 to $107, suggesting significant upside potential. The adjustment follows Vera's fourth-quarter 2024 financial report, which was released earlier today. The report highlighted the company's continued progress on its key Phase 3 ORIGIN 3 trial without significant new clinical or corporate developments.
Vera Therapeutics is on track with its ORIGIN 3 trial, anticipating full enrollment in the second quarter of 2025. The company also expects to release top-line proteinuria data for the first 200 patients enrolled in the same quarter. These results are projected to lead to a Biologics License Application (BLA) filing in the second half of 2025, with FDA approval and the commercial launch of their product anticipated in 2026.
Despite higher than expected Selling, General, and Administrative (SG&A) expenses, Guggenheim analysts view Vera's financial position as strong. The firm's balance sheet has been fortified by approximately $600 million in net proceeds from two equity offerings conducted in 2024. This financial stability is expected to support the company through to its potential commercialization phase in 2026.
The price target increase to $61 reflects updated cash balances, incremental expense adjustments, and the time value of money. While the stock has experienced a 34% decline year-to-date, Guggenheim's confidence in Vera Therapeutics remains unshaken by recent market volatility related to competitor Otsuka's updates on their product sibeprenlimab. Guggenheim continues to endorse Vera's atacicept for its best-in-class potential, as detailed in their February 14 note. For deeper insights into Vera's financial health and additional investment signals, InvestingPro subscribers can access 11 more exclusive ProTips and comprehensive financial metrics.
In other recent news, Vera Therapeutics has reported its financial results for 2024, highlighting a net loss of $152.1 million, with a net loss per diluted share of $2.75. The company ended the year with $640.9 million in cash, which it believes will fund operations through the potential approval and commercial launch of its drug atacicept. The drug, intended to treat IgA Nephropathy (IgAN), is currently in Phase 3 trials, with results expected in the second quarter of 2025, and a Biologics License Application planned for the second half of 2025. Evercore ISI maintains an Outperform rating on Vera Therapeutics with a $75 price target, citing the potential of atacicept as a disease-modifying therapy despite recent market reactions to competitor developments. Cantor Fitzgerald also reiterated its Overweight rating and a $107 price target, emphasizing the promising data for atacicept, which has shown the potential to stabilize kidney function. The market is closely watching the competition between Vera's atacicept and Otsuka's sibeprelimab, which is expected to enter the market earlier. Otsuka's drug could challenge Vera's position in the IgAN market, with its once-monthly self-administered prefilled syringe potentially seen as an advantage over atacicept's weekly autoinjector. Investors are keenly observing these developments as both companies prepare to release further data in mid-2025.
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