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Ascendis Pharma (ASND) Moves 17.1% Higher: Will This Strength Last?

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Ascendis Pharma A/S (ASND - Free Report) shares ended the last trading session 17.1% higher at $139.57. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14.1% loss over the past four weeks.

This surge in share price came after ASND reported topline results from the pivotal ApproaCH study which evaluated its investigational once-weekly administered TransCon CNP in children aged two to 11 years with achondroplasia, the most common form of dwarfism. The study achieved its primary endpoint of annualized growth velocity (AGV) at 52 weeks – children treated with TransCon CNP achieved a mean AGV of 5.89 cm/year compared to 4.41 cm/year in the placebo group.

Currently, there is only one drug approved to treat achondroplasia in both the United States and Europe – Voxzogo which is marketed by BioMarin. While it is difficult to directly compare the results of two different clinical studies, investors were likely impressed with the once-weekly dosing advantage of TransCon CNP over Voxzogo which requires daily dosing.

This company is expected to post quarterly loss of $1.10 per share in its upcoming report, which represents a year-over-year change of +64.7%. Revenues are expected to be $136.97 million, up 163.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Ascendis Pharma, the consensus EPS estimate for the quarter has been revised 17.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ASND going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ascendis Pharma is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Alector (ALEC - Free Report) , finished the last trading session 5.8% lower at $5.68. ALEC has returned 17.3% over the past month.

For Alector, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.53. This represents no change from what the company reported a year ago. Alector currently has a Zacks Rank of #3 (Hold).


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