Promising Outlook for Disc Medicine: Buy Rating Backed by FDA Priority Voucher and Strategic Preparations for Bitopertin Launch
Douglas Tsao has issued a Buy rating for Disc Medicine, citing the promising outlook for its drug candidate, bitopertin, which has received the FDA's Commissioner’s National Priority Voucher, expediting its review process. The drug also holds Orphan Drug and Rare Pediatric Disease Designations. Disc Medicine is preparing for a commercial launch with a fully staffed team and a managed supply chain. Tsao's price target is $118, while Morgan Stanley also maintains a Buy rating with a $90 target, despite some regulatory and financial risks.
Douglas Tsao has given his Buy rating due to a combination of factors that highlight the promising outlook for Disc Medicine. Firstly, the company’s drug candidate, bitopertin, has been awarded the Commissioner’s National Priority Voucher (CNPV) by the FDA, which significantly shortens the review period for its approval. This voucher suggests a high likelihood of approval, as the FDA tends to select applications with clear data for expedited review. Additionally, bitopertin has received Orphan Drug Designation and Rare Pediatric Disease Designation, further supporting its potential for approval.
Moreover, Disc Medicine is actively preparing for the commercial launch of bitopertin, with a fully staffed commercial team ready to engage with the EPP patient community. The company has also ensured that the commercial supply chain is well-managed. Tsao’s valuation of Disc Medicine includes a price target of $118, based on a risk-adjusted revenue estimate and the probability of success for various pipeline assets. Despite some risks, such as regulatory approval and financial challenges, the overall prospects for Disc Medicine appear strong, justifying the Buy rating.
In another report released on October 3, Morgan Stanley also maintained a Buy rating on the stock with a $90.00 price target.
