Balanced Outlook on Roche Holding Amid Gazyva’s Promising Yet Uncertain Prospects

Analyst Steve Scala of TD Cowen maintained a Hold rating on Roche Holding (RHHBY – Research Report), with a price target of $43.00.

Steve Scala has given his Hold rating due to a combination of factors surrounding Roche Holding’s recent developments and future prospects. The Phase III trial results for Gazyva in lupus nephritis demonstrated promising outcomes, showing a potential best-in-class profile for the drug. However, despite its strong showing as a starter therapy, uncertainties remain regarding its role in maintenance therapy and the long-term significance of eGFR changes.
Moreover, while Gazyva’s performance in trials is encouraging, the high placebo response rate in male patients introduces some ambiguity that could affect regulatory perspectives. Additionally, although the drug could potentially add substantial revenue, broader market dynamics and future guideline updates will play a crucial role in determining its competitive positioning. Thus, these factors lead to a balanced outlook, warranting a Hold rating.