Ascendis Pharma A/S (ASND) reported disappointing second-quarter sales of $38.76 million, falling short of the consensus estimate of $92.7 million. This represents a decrease from the 47.4 million euros reported in the same period last year.
Cantor Fitzgerald analysts highlighted the U.S. pricing for Yorvipath, Ascendis’s treatment for hypoparathyroidism, as a key takeaway from the earnings call. The price of $285,000 per patient per year significantly exceeded the analyst’s expectations of $160,000 to $190,000. This high pricing, coupled with lower-than-expected guidance for Skytrofa, a treatment for growth hormone deficiency, has pushed the company’s cash flow breakeven target to 2024-2025 instead of 2024. Achieving breakeven this year is now considered unlikely unless Ascendis significantly reduces costs.
Despite these challenges, Cantor Fitzgerald maintains an Overweight rating for ASND, albeit with a lowered price target of $170 from $173. The pricing hurdles are not exclusive to Skytrofa, as long-acting growth hormone products from Novo Nordisk A/S (NVO) and Pfizer Inc (PFE) also experienced difficulties in the second quarter. However, the analyst contends that competition is not the primary contributing factor.
Stifel echoes a similar sentiment, maintaining a Buy rating and emphasizing the potential of Yorvipath in hypoparathyroidism, a market they estimate to be worth billions of euros in the U.S. Despite launch delays and the high price tag, Stifel remains optimistic about the drug’s future.
Ascendis Pharma is also anticipating data from the ApproaCH trial of TransCon CNP, a treatment for Achondroplasia, in the coming weeks. While the drug is expected to face competition from BioMarin Pharmaceutical Inc’s (BMRN) Voxzogo (vosoritide), expectations for TransCon CNP to achieve a competitive edge remain low.
ASND stock closed down 11.30% at $119.50 on Wednesday following the release of the earnings report.
