- The company also said that the FDA granted the company a Rare Pediatric Disease Priority Review Voucher (PRV) following the approval.
- Wedbush reiterated an ‘Outperform’ rating and $16 price target on Rocket Pharmaceuticals, saying the Kresladi approval is a "significant milestone" for the company.
- LifeSci Capital added that it is impressive Rocket was able to usher Kresladi through a complex cell-based gene therapy approval.
Shares of Rocket Pharmaceuticals Inc. (RCKT) dropped 22% on Friday after the company announced U.S. Food and Drug Administration's approval for its drug in the treatment of an inherited pediatric disorder, a sell-off that Wall Street dismissed as unjustified.
Earlier on Friday, Rocket announced that the FDA has approved its gene therapy Kresladi for the treatment of certain pediatric patients with severe leukocyte adhesion deficiency-I, an ultra-rare, inherited pediatric immunodeficiency characterized by recurrent, severe infections.
The company also said that the FDA granted the company a Rare Pediatric Disease Priority Review Voucher (PRV) following the approval. The voucher is designed to encourage the development of therapies for rare pediatric disease
Wall Street Weighs In
Wedbush reiterated an ‘Outperform’ rating and $16 price target on Rocket Pharmaceuticals, saying the Kresladi approval is a "significant milestone" for the company, which the firm believes reflects management's strong execution. Payer coverage should not be an issue, and the priority review voucher will strengthen Rocket's balance sheet, the analyst told investors in a research note. The firm added that it does not see the negative stock price reaction as justified.
LifeSci Capital analyst Patrick Dolezal also reiterated an ‘Outperform’ rating and $9 price target on Rocket Pharmaceuticals. The firm said the PRV could be a potentially meaningful source of non-dilutive capital that could net Rocket $100 million to $200 million. The firm added that it is impressive Rocket was able to usher Kresladi through a complex cell-based gene therapy approval and expects read-through to the company's cardiac gene-therapy pipeline.
How Did Retail Traders React?
On Stocktwits, retail sentiment around RCKT stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.
RCKT stock has fallen 53% over the past 12 months.
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