Savara Inc. (NASDAQ: NASDAQ:), a specialty pharmaceutical company, maintained its Overweight rating and $16.00 price target from Piper Sandler.
The affirmation follows a recent webinar that provided insights into Savara’s commercial strategy for its aPAP treatment.
Savara’s management has been actively working to identify patients with autoimmune pulmonary alveolar proteinosis (aPAP), aiming to have approximately 1,000 patients ready by the product’s launch.
The company has outlined its approach to building the total addressable market for aPAP by profiling around 3,600 diagnosed patients through claims analyses.
The patient base represents a significant opportunity for Savara. Furthermore, the use of ClearPath Ab testing is anticipated to aid in diagnosing an additional 3,700 potential aPAP patients. The recently launched Expanded Access Program (EAP) could also provide valuable insights into identifying more patients.
Piper Sandler’s commentary highlighted that MOLBREEVI, Savara’s aPAP treatment, holds promising potential due to the high unmet medical need, positive feedback from physicians and patients, strong pricing power, and favorable reimbursement conditions. With these factors in mind, the firm believes that Savara’s stock is currently undervalued.
The positive outlook extends to the first half of 2025 when Savara is expected to file a Biologics License Application (BLA) for MOLBREEVI. Piper Sandler’s stance suggests confidence in Savara’s potential for growth and success in the aPAP market.
In other recent news, Savara Inc. has made significant strides in its clinical progress and financial operations. The biopharmaceutical company recently reported earnings per share at ($0.12), slightly below the ($0.10) forecasted by Oppenheimer and consensus estimates. Despite this, Oppenheimer maintained its Outperform rating on Savara, with H.C. Wainwright also sustaining its Buy rating.
Savara has also announced a $100 million stock offering of 26,246,720 shares, managed by firms such as Jefferies, Piper Sandler, and Guggenheim Securities. In addition, the company reported positive results from its Phase 3 IMPALA-2 clinical trial for Molbreevi, a potential treatment for autoimmune Pulmonary Alveolar Proteinosis (aPAP), showing a significant improvement in lung function.
In other developments, Savara launched an Expanded Access Program for molgramostim, targeting aPAP patients, and presented its latest clinical findings at the European Respiratory Society Congress.
The company also announced the appointment of Braden Parker as its new Chief Commercial Officer, bringing over 25 years of experience in the healthcare and biotech industry. Savara is also working towards submitting a Biologics License Application for molgramostim to the FDA in the first half of 2025.
InvestingPro Insights
While Piper Sandler maintains an optimistic outlook on Savara Inc. (NASDAQ:SVRA), recent InvestingPro data provides additional context for investors. The company’s market capitalization stands at $641.94 million, reflecting its current position in the specialty pharmaceutical sector. Despite the positive analyst rating, it’s worth noting that Savara’s stock has experienced a -8.02% total return over the past week, aligning with an InvestingPro Tip that the stock has taken a significant hit recently.
Financially, Savara’s position is mixed. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide flexibility as it moves towards potential product launches. However, investors should be aware that Savara is not currently profitable, with a negative gross profit of -$45.63 million in the last twelve months as of Q2 2024.
Looking ahead, the next earnings date is set for November 7, 2024, which may provide further insights into the company’s progress with MOLBREEVI and its commercial strategies. For those seeking a deeper analysis, InvestingPro offers 8 additional tips that could help inform investment decisions in Savara Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
