A Look At Zevra Therapeutics (ZVRA) Valuation After New Uniphar MIPLYFFA Access Agreement

Zevra Therapeutics (ZVRA) drew fresh investor attention after announcing an exclusive expanded access distribution agreement with Uniphar, giving Niemann Pick Disease Type C patients reimbursed access to MIPLYFFA in select territories outside Europe.

See our latest analysis for Zevra Therapeutics.

The Uniphar agreement arrives during a softer patch for the stock, with a 90 day share price return of an 18.16% decline and a 1 year total shareholder return of a 1.18% decline. However, the 3 year total shareholder return of 83.70% signals longer term momentum that has cooled recently.

If treatments for rare diseases are on your radar, this could be a useful moment to widen the lens and check out healthcare stocks as potential additions to your watchlist.

With Zevra’s shares weaker over the past year yet trading at a large discount to the published analyst price target, the key question is whether the current price reflects caution or whether the market is underestimating future growth potential.

Most Popular Narrative: 64.1% Undervalued

With Zevra shares at US$8.34 and the narrative fair value at US$23.22, the gap is wide enough that the underlying assumptions matter a lot.

The company's strong cash position (US$217.7 million) after the PRV sale enables continued pipeline development, strategic commercial activities, and greater flexibility to pursue licensing/partnership deals without dilutive financing, enhancing the outlook for future earnings and margin improvement.

Read the complete narrative.

Curious what would need to happen for rare disease assets to support that valuation gap? Revenue expansion, margin lift and a future earnings multiple all play crucial roles.

Result: Fair Value of $23.22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are clear pressure points, including slow OLPRUVA uptake with related impairments, and Zevra’s heavy reliance on a very small MIPLYFFA patient pool.

Find out about the key risks to this Zevra Therapeutics narrative.

Build Your Own Zevra Therapeutics Narrative

If this view does not fully line up with your own thinking, or you prefer to weigh the data yourself, you can build a custom thesis in just a few minutes with Do it your way.

A great starting point for your Zevra Therapeutics research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Zevra has sparked your curiosity, do not stop here. Broaden your watchlist now and give yourself more options for where to put fresh capital to work.

• Spot potential turnaround stories by scanning these 878 undervalued stocks based on cash flows that the market might be pricing cautiously right now.
• Zero in on future facing themes with these 29 quantum computing stocks that tie into long term computing trends.
• Filter for these 14 dividend stocks with yields > 3% that can add income to your portfolio.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com