Analysts at Berenberg Bank provided their outlook on Ascendis Pharma A/S (NASDAQ:ASND), stating they see long-term potential as the company transitions from a clinical to a commercial stage company.

According to the analysts, near-term upside drivers for SKYTROFA include (1) ongoing conversions of daily injection patients, (2) international sales, and (3) potential upside from label expansions.

As uncertainties remain about future competitive dynamics and pricing pressures, the analysts have lowered their peak revenue estimate, which results in a 10% reduction in their price target to $192 from $213.

The analysts await TransCon PTH (blockbuster potential) Phase III results this month and believe the results, if favorable, would trigger a regulatory filing in Q3 and eventually launch in mid-2023. The analysts believe that investors are meaningfully underestimating the company’s drug delivery technology. The analysts maintained their buy rating on the company.