The target price, the highest among all analysts tracking the drugmaker, implies an upside of more than 28% from Thursday’s closing price of ₹1,135.10.
Novartis decision improves outlook for Usnoflast
Bernstein said Novartis’ decision to discontinue VHB937 for amyotrophic lateral sclerosis (ALS) on September 16 improves the commercial landscape for Zydus Lifesciences’ Usnoflast.
The brokerage said Usnoflast targets a different biological pathway and remains positive on the drug’s probability of success.
Bernstein said the key value driver for Zydus will be whether the ongoing UNITE-ALS study shows a clinically meaningful slowing of disease progression.
Usnoflast is being evaluated as an oral treatment for ALS. Bernstein said the drug’s orphan designation in the US and the potential for priority review by the US Food and Drug Administration (FDA) could support the commercial opportunity if clinical results are positive.
The brokerage also pointed to the drug’s Phase IIb efficacy, oral dosing and potential applicability across a broad ALS population as factors that could support an annual revenue run-rate of around $100 million, subject to positive clinical outcomes.
Analyst data and stock performance
Bernstein’s target is the highest among the 34 analysts tracking the stock, as per Bloomberg data, which shows 19 analysts having a “buy” recommendation on the stock, nine saying “hold”, and six have a “sell” rating on the stock.The consensus estimate of price targets implies an upside potential of around 8% from current levels.Zydus Lifesciences shares rose nearly 3% on Friday to hit an intraday high of ₹1,167.3. The stock is now trading with gains of 2% at ₹1,157.7. The stock is up 27% so far this year.
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