SVRA - Savara: Today's Data 'Win' Rouses Market All Too Briefly

2024-06-26 15:13:41 ET

Summary

• Savara Inc. is a biotech company focused on rare lung diseases that joined the Nasdaq in 2017.
• Today, management shared the news that lead candidate, molgramostim met primary and secondary endpoints in a Phase 3 study in patients with Autoimmune Pulmonary Alveolar Proteinosis, a rare lung disease.
• Despite an initial stock price spike, Savara's stock has retreated in trading today, likely due to profit taking, but also possibly reflecting some doubts harbored by the market.
• Analysts have suggested a peak revenue target of >$400 million for molgramostim in APAP, a disease for which there are no approved therapies, with only ~5k patients in the US.
• As such, the market opportunity may be smaller than forecast, and that seems to be weighing on the stock price. If approved, however, Savara shareholders ought to be rewarded eventually.

Investment Overview

Savara Inc. ( SVRA ) is a Langhorne, Pennsylvania-based biotech that joined the Nasdaq in 2017, via a merger with Mast Therapeutics. The company's long-term focus has been rare and debilitating lung disease, and management shared the good news today that its lead and only candidate, molgramostim, an inhaled biologic, specifically, inhaled granulocyte-macrophage colony-stimulating factor, met primary and secondary endpoints in a pivotal Phase 3 study.

Savara's stock price initially soared on the news, reaching a high of >$4, but in very little time it has fallen back to ~$3.6 at the time of writing. First, let's consider the data shared today....

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