Citi opens ‘positive catalyst watch’ on Ascendis into data

Citi opened a “30-day positive catalyst watch” on shares of Ascendis Pharma (ASND) while keeping a Buy rating on the name with a $178 price target. The TransCon CNP data for achondroplasia from the pivotal ApproaCH trial has been recently accelerated to Q3 from prior Q4 expectations, the analyst tells investors in a research note. The firm believes the update is imminent, given that management historically announces data within two weeks of entering its quiet period. While investors have been skeptical of TransCon CNP since first efficacy data was reported, viewing it as inferior to BioMarin’s (BMRN) Voxzog, Citi believes differences in trial design and demographics “played an outsized role in this” and expects the ApproaCH update will highlight a competitive profile, contends the analyst. As such, the firm believes the stock’s risk/reward is skewed positively into the data.