Last month, Acceleron announced positive topline results from the PULSAR trial for sotatercept in the treatment of patients with pulmonary arterial hypertension. The stock had jumped over 50% on the news at the time. Developments in this area and potential approvals are likely to fuel the stock in the coming months.
Prior to this, the company said that the MEDALIST trial evaluating the use of Reblozyl in the treatment of anemia in patients with myelodysplastic syndromes (MDS) also turned out positive results. Reblozyl has already received FDA approval for the treatment of anemia in patients with beta thalassemia. The approval of this product for the new indication is also likely to give the stock a boost.
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In the third quarter of 2019,
Acceleron reported revenue of $4.2 million and a net loss of $45.4 million. As
of September 30, 2019, the company had cash, cash equivalents and investments of
$468.3 million. Acceleron believes the current cash level will be sufficient to
fund operating requirements until it receives significant royalty revenue from luspatercept
sales.
The majority of analysts have rated the stock as Buy and it has an average price target of $110.10, which represents a 21% increase from the current level.