Travere Therapeutics soars as kidney disorder drug bags FDA approval

Calliditas Therapeutics AB

21/02/2023 17:54

(Updates)
    ** Shares of biopharma co Travere Therapeutics Inc  TVTX.O 
rise 21.7% to $21.68 
    ** Stock set for best day since 2016, if gains hold
    ** The U.S. FDA grants an accelerated approval to co's drug
Filspari to treat a type of chronic kidney disease called
Berger's disease, in adults with a high risk of advancing to
kidney failure
    ** Drug to be priced at $9,900/month, making it cheaper than
Calliditas Therapeutics'  CALTX.ST  drug Tarpeyo costing
$14,160/month, which was greenlit by FDA for the same indication
in Dec 2021
    ** Brokerage Jefferies estimates $1 bln peak sales for the
drug
    ** Filspari comes with a boxed warning for inflammation in
liver and birth defects, which initially caused the stock to
tank post-approval
    ** The boxed warning was on expected lines based on drug
class - Jefferies
    ** Brokerages raise price targets after the approval
 BROKERAGE         PRIOR P.T.  NEW P.T.
 Jefferies         $35         $43
 Evercore ISI      $30         $36
 Piper Sandler     $42         $46
 SVB Securities    $38         $40
 H.C. Wainwright   $36         $40
 Wedbush           $26         $30
    ** Stock down 22% in last 12 months
 (Reporting by Aditya Samal)
 ((Aditya.Samal@thomsonreuters.com;))