Raymond James has upgraded Disc Medicine (NASDAQ:IRON) shares to Strong Buy, setting a new price target of $110.00, up from $66.00, following positive feedback from the FDA regarding its drug candidate bitopertin for treating erythropoietic protoporphyrias (EPP).
Regulatory Path for Bitopertin
The FDA indicated it would consider an accelerated approval filing based on protoporphyrin IX (PPIX) reduction as a surrogate biomarker of efficacy for bitopertin in EPP. This allows Disc Medicine to proceed with existing data. The APOLLO study is designed to demonstrate the safety and efficacy of bitopertin, with significant reductions in PPIX levels already observed in earlier studies, crucial for improving patients’ light tolerance.
The APOLLO study’s co-primary endpoints focus on clinically meaningful outcomes, such as change in PPIX from baseline and duration of sunlight exposure without pain. The expected timeline aligns with FDA guidance.
Analyst Outlook
Analyst Rami Katkhuda from LifeSci Capital maintained a Buy rating on Disc Medicine's stock with an $85.00 price target, citing the company's clear regulatory path for bitopertin in treating EPP. The expected NDA submission for bitopertin is planned for the second half of 2025, with approval and commercial launch anticipated in 2026. Stifel Nicolaus also assigned a Buy rating to the stock with a $94.00 price target.
Clinical Advancements
Disc Medicine reported promising results from its Phase 1b study of DISC-0974, which showed significant reduction in hepcidin levels and improvement in iron mobilization and hemoglobin levels in patients with non-dialysis-dependent chronic kidney disease (NDD-CKD) and anemia.
Financial and Strategic Moves
Disc Medicine announced a public stock offering of approximately $178 million to advance research and clinical development of its product candidates. The company also appointed Dr. Rahul Rajan Kaushik as Chief Technical Officer and Dr. Steve Caffé as Chief Regulatory Officer.
