Wedbush ups SpringWorks target to $81, expects Merck KGaA ‘official’ offer soon

Wedbush raised the firm’s price target on SpringWorks Therapeutics (SWTX) to $81 from $77 and keeps an Outperform rating on the shares following the Food and Drug Administration’s approval for Gomekli in adult and pediatric patients with NF-1-PN tumors and disclosure of a wholesale acquisition cost of $206.25 per mg. The company estimates an average cost of treatment of about $22,000 per month for pediatric and $30,000 for adults in the U.S. The firm had previously estimated a net monthly price of $19,000. Wedbush’s new Gomekli worldwide estimates, which assume an EU approval in late 2025, are $37M, $192M, $432M, and $859M in the years 2025-2028. The firm believes that approval was likely one of the conditions for Merck KGaA (MKGAY) to make an “official” offer and expects that to come in the near-term.