Stock price movements
On February 7, Solid Biosciences (SLDB) closed at $7.19, 67.82% lower than its previous closing price, 5.27% higher than its 52-week low of $6.83, and 86.89% below its 52-week high of $54.84.
Its market cap was $245.61 million, and its price-to-book value and price-to-cash flow ratios were 1.71x and 1.69x, respectively.
Solid Biosciences lost almost two-thirds of its market cap yesterday after the company issued a press release announcing preliminary results from its Phase 1 and 2 dose-ascending trial, IGNITE DMD, evaluating the investigational therapy SGT-001 in a DMD (Duchenne muscular dystrophy) indication. Although the preliminary outcomes haven’t been very encouraging, the company plans to accelerate activities associated with the evaluation of the clinical potential of higher doses of SGT-001 in DMD indications. Solid Biosciences is expecting an interim analysis from the IGNITE DMD trial in the second half of 2019.
According to the company’s investor presentation, 10,000–15,000 patients are afflicted with DMD in the United States.
Analysts’ recommendations and target price
The 12-month consensus recommendation for Solid Biosciences is a “hold.”
Of the eight analysts covering Solid Biosciences, two have given it “buys,” four have given it “holds,” one has given it a “sell,” and one has given it a “strong sell.” Analysts’ 12-month target price for Solid Biosciences is $37.5, 421.56% higher than its closing price on February 7. The highest target price estimate for the company is $50, and the lowest is $15.
Loss projections for future years
Analysts expect Solid Biosciences’ losses to increase 45.33% YoY to $21.05 million in the fourth quarter of 2018 and 45.37% YoY to $23.08 million in the first quarter of 2019. Analysts also expect Solid Biosciences’ losses to increase 89.22% YoY to $74.39 million in 2018, 38.68% YoY to $103.17 million in 2019, and 17.03% YoY to $120.74 million in 2020.