UroGen Pharma holds neutral rating with $22 price target By Investing.com

On Tuesday, Goldman Sachs maintained its Neutral stance on UroGen Pharma (NASDAQ:URGN), with a consistent price target of $22.00. The focus of the firm’s analysis is on UroGen’s efforts to complete its rolling New Drug Application (NDA) submission for UGN-102, despite flat year-over-year sales of its product Jelmyto.

UroGen Pharma recently disclosed its second quarter 2024 financial results, reporting Jelmyto sales of $21.8 million. This figure aligns with Goldman Sachs’ projection of $22 million but falls short of the wider market expectation of $23.5 million. The company’s operating expenses exceeded the firm’s forecasts, as UroGen Pharma advances towards finalizing its rolling NDA for UGN-102, a treatment for low-grade intermediate-risk non-muscle invasive bladder cancer (LG-IR-NMIBC).

Goldman Sachs acknowledged the positive 12-month durability data for UGN-102 but expressed caution regarding the treatment’s potential to replace transurethral resection of bladder tumor (TURBT) surgery, a long-established practice among urologists. The investment bank is awaiting further updates from UroGen Pharma’s regulatory process before altering its position.

In summary, Goldman Sachs has reiterated its Neutral rating on UroGen Pharma, with an unchanged price target of $22.00, as the company progresses with its regulatory submissions and seeks to establish its treatments in the medical community.

In other recent news, UroGen Pharma has maintained its Buy rating, according to recent comments from TD Cowen, despite second-quarter sales for Jelmyto falling short of expectations. The firm projected that the company’s year-end figures would align with the lower end of their guidance, which is set between $95 million and $102 million.

UroGen Pharma is also preparing for the launch of UGN-102, anticipated in the first quarter of 2025, which is reportedly ahead of schedule. The 12-month data released in June should positively influence this upcoming product launch.

In more recent developments, UroGen Pharma reported Q1 revenues of $18.8 million, primarily driven by sales of Jelmyto, but also registered a net loss of $32.3 million for the same quarter.

The company’s Phase 3 ENVISION trial for UGN-102 demonstrated an 82.3% Duration of Response at the 12-month mark, leading several firms, including H.C. Wainwright and Ladenburg Thalmann, to raise their price targets for UroGen Pharma. Lastly, in the company’s recent annual meeting, shareholders elected eight directors and approved an amendment to the 2017 Equity Incentive Plan, increasing the number of shares authorized for issuance by 800,000.

InvestingPro Insights

As UroGen Pharma (NASDAQ:URGN) navigates the regulatory pathway for its treatment UGN-102, investors are closely monitoring the company’s financial health and market potential. According to InvestingPro data, UroGen Pharma holds a market cap of approximately $609.32 million. Despite challenges, the company boasts a gross profit margin of an impressive 89.53% for the last twelve months as of Q1 2024, underlining the efficiency of its operations in generating revenue from its sales.

One of the key InvestingPro Tips for UroGen Pharma is that analysts have recently revised their earnings estimates upwards for the upcoming period, reflecting a potential positive outlook on the company’s performance. Additionally, it’s noteworthy that the company holds more cash than debt on its balance sheet, providing a cushion of financial stability as it continues to invest in its drug development pipeline.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available on the platform, offering a comprehensive look at UroGen Pharma’s financials, market performance, and future prospects. The insights available on InvestingPro may help investors make more informed decisions as they assess the potential impact of UroGen Pharma’s ongoing regulatory submissions and market strategy.

For further details and to explore the range of available tips, interested readers can visit: https://www.investing.com/pro/URGN.

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