William Blair initiated coverage on Viridian Therapeutics Inc. (NASDAQ:VRDN) on Wednesday.
Analyst Lachlan Hanbury-Brown writes that the company's anti-IGF-1R franchise represents a meaningful advance compared to Amgen Inc.’s (NASDAQ:AMGN) Tepezza (teprotumumab-trbw) for thyroid eye disease (TED).
TED is a rare autoimmune disorder characterized by inflammation and swelling of the tissues around the eyes, often leading to pain, vision impairment.
The William Blair analyst acknowledges that growth in the U.S. TED market has plateaued in recent years, and writes that new therapies offering a more convenient administration, a cleaner picture of the adverse event profile of IGF-1R inhibition, and diplopia benefit in chronic disease have the potential to grow the market.
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William Blair writes that Tepezza generates annual U.S. sales of roughly $2 billion with only single-digit penetration of the moderate-to-severe TED market, making for a favorable commercial environment for veligrotug, as it has some advantages over Tepezza.
Veligrotug requires fewer infusions (5 versus 8), and each infusion is shorter (30-45 minutes versus 60-90 minutes), a lower overall dose may offer an improved safety profile, and it appears to have a more rapid onset of efficacy.
William Blair initiated with an Outperform rating and a fair value estimate of $47.
Analyst Hanbury-Brown wrote on Wednesday that veligrotug has important advantages over Tepezza that could drive share capture and modest market expansion following a potential mid-2026 approval.
In November, Viridian Therapeutics submitted a marketing application to the U.S. Food and Drug Administration (FDA) for veligrotug for thyroid eye disease.
Viridian’s application includes a request for Priority Review, which, if granted, could accelerate the FDA’s review timing for a potential mid-2026 veligrotug commercial launch, if approved.
William Blair also added that the bigger value driver is the subcutaneously administered VRDN-003, for which top-line Phase 3 data are expected in the first and second quarters of 2026.
VRDN-003 is designed to be administered via a commercially validated, low-volume autoinjector that patients can self-administer at home, and an FDA application submission is planned for year-end 2026.
Price Action: VRDN stock is up 3.84% at $31.60 at the last check on Wednesday.
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